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Podcast

Roman Storm Speaks - Tornado Cash Developer on What’s at Stake

Explore the pivotal case for digital rights with Tornado Cash developer Roman Storm, discussing the implications for software privacy and innovation.
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Nov 21, 20243 min read

In our latest episode, we delve into one of the most important cases for digital rights this decade. Roman Storm, a developer of Tornado Cash, joins us alongside his attorney, Keri Curtis Axel, to discuss the criminal charges he faces for developing open-source privacy tools on Ethereum. Arrested from his home in Seattle in August 2023, Roman now faces decades in prison—a chilling prospect for the crypto community and for the future of digital privacy.

This case raises pivotal questions:

  • Is code speech?
  • If bad actors misuse open-source code, are developers liable?
  • Do U.S. citizens have a right to digital privacy?

The answers to these questions will define the boundaries of cryptography, privacy, and innovation in the U.S. for years to come. And, as Roman’s lawyer emphasized, this case is not just about regulation—it’s about criminal enforcement, with the U.S. government leveraging its full weight against a single individual.


Roman’s Story: From Developer to Defendant

Roman’s journey began as a curious child in post-Soviet Russia, where his parents’ gift of a computer sparked a lifelong passion for technology. After immigrating to the U.S., he immersed himself in programming, determined to solve real-world problems and live the American dream. Tornado Cash was one such solution—a tool to provide privacy for blockchain transactions, addressing the Ethereum community’s need for anonymity in an open and immutable system.

But that innovation has now turned into a nightmare. On August 23, 2023, Roman’s home was raided by armed federal agents. He recalls the traumatic experience vividly: waking up to rifles pointed at him, his 3-year-old daughter witnessing the chaos, and his property being seized. Despite cooperating with the Department of Justice (DOJ) before his arrest, Roman now faces charges that could imprison him for up to 45 years.


Roman is charged with:

  1. Conspiracy to Commit Money Laundering (20-year max sentence)
  2. Conspiracy to Operate an Unlicensed Money Transmitting Business (5-year max sentence)
  3. Conspiracy to Violate the International Economic Emergency Powers Act (20-year max sentence)

His lawyer, Keri Curtis Axel, argues that these charges lack legal basis:

  • Money Services Business (MSB): Tornado Cash is decentralized, doesn’t control user funds, and charges no fees—disqualifying it as an MSB under the law.
  • Money Laundering: The government alleges negligence rather than intent, a dangerous precedent for criminal liability in open-source software.
  • Sanctions Evasion: The charges rely on the actions of third parties, like the Lazarus Group, with no connection to Roman.

Keri emphasizes that this case is about more than Roman—it’s about whether developers can be criminalized for creating software that others misuse.


What’s at Stake for Crypto

The implications of Roman’s case extend far beyond Tornado Cash.

If the government’s arguments succeed, any developer working on decentralized finance (DeFi) protocols could be held liable for their use, deterring innovation and crippling the crypto ecosystem. This would effectively outlaw immutability and openness, cornerstones of blockchain technology.

Roman’s defense has already achieved small victories, including challenging unconstitutional seizure of cryptocurrency stored in cold wallets. But the battle is far from over.


How You Can Help

Roman’s trial is set for April, and his legal defense requires substantial resources—an estimated $2 million to see the case through. Bankless has donated $50,000 to his legal fund and encourages the crypto community to join in supporting Roman.

Roman’s fight is our fight. It’s about protecting the fundamental right to privacy, ensuring developers can write open-source code without fear, and pushing back against government overreach.

As Roman said, “My life is literally at stake.”

Let’s stand with him. Let’s stand for privacy. Let’s stand for crypto.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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