Daily Crypto News & Musings

DeFi Fund Urges Trump to Halt DOJ’s Case Against Tornado Cash Founder, Citing Innovation Risks

DeFi Fund Urges Trump to Halt DOJ’s Case Against Tornado Cash Founder, Citing Innovation Risks

DeFi Education Fund Urges Trump to Intervene in DOJ’s Case Against Tornado Cash Co-Founder

The DeFi Education Fund has made a strong call to President Trump, urging him to intervene in the Department of Justice’s (DOJ) ongoing legal battle against Roman Storm, co-founder of Tornado Cash, a cryptocurrency mixing service designed to enhance transaction privacy. In a letter sent to White House crypto czar David Sacks, the fund argues that the DOJ’s prosecution of developers for the misuse of their open-source software poses a significant threat to innovation across multiple industries in the U.S.

  • DeFi Education Fund calls on Trump to intervene in DOJ’s case against Roman Storm
  • Storm faces up to 45 years for money laundering and unlicensed money transmitting
  • Fund warns of stifling innovation across industries

In August 2023, Roman Storm was charged with allegedly facilitating the laundering of over $1 billion through Tornado Cash. A cryptocurrency mixing service like Tornado Cash helps users anonymize their transactions, making it harder to trace the origin of funds. The charges against Storm include conspiracy to facilitate money laundering, which involves disguising the origins of illegally obtained money, conspiracy to operate an unlicensed money transmitter, meaning handling financial transactions without the necessary legal permissions, and violating U.S. sanctions. If convicted, Storm could face a combined sentence of up to 45 years. His attempts to have the charges dismissed were denied by U.S. District Judge Katherine Polk Failla in September 2024, and a subsequent bid for reconsideration was rejected in February 2025.

The DeFi Education Fund’s letter, dated April 28, 2025, goes beyond the immediate case, highlighting the broader implications for open-source development. Open-source development refers to software where the source code is publicly available for anyone to use, modify, or distribute. The fund argues that the DOJ’s approach not only threatens this foundational aspect of modern software development but could also stifle innovation in fields ranging from financial technology to artificial intelligence and healthcare. They point out that this prosecution contradicts previous guidance from the Treasury during Trump’s first term, which clarified that developers of self-custodial, peer-to-peer protocols are not considered money transmitters under federal law.

The letter to the White House states:

We ask President Trump to protect American software developers, restore legal clarity, and end this unlawful DOJ overreach.

Furthermore, it emphasizes the principle of developer responsibility:

No one writing code in good faith should have to fear prosecution for the actions of strangers.

These statements underscore the fund’s belief that the case against Storm is not just about one individual but about the future of technological innovation in the country.

The crypto community has rallied in support of Storm, with over 253 industry leaders signing a petition. Notable signatories include Ethereum core developer Tim Beiko, Paradigm co-founder Matt Huang, and Bankless co-founder Ryan Sean Adams. This significant support reflects a growing consensus within the cryptocurrency space that the case represents a dangerous precedent for the industry.

The case against Roman Storm is part of a broader regulatory crackdown on cryptocurrency services that facilitate illicit activities. The DOJ’s National Cryptocurrency Enforcement Team (NCET) has been at the forefront of this effort, emphasizing the need to combat the misuse of cryptocurrencies. The involvement of the Lazarus Group, a North Korean cybercrime organization, adds an international dimension to the case, highlighting the global challenges of enforcing U.S. sanctions.

The DeFi Education Fund’s appeal to Trump leverages his administration’s previous stance on cryptocurrency regulation, hoping to sway the current administration’s approach. They argue:

Achieving the goal of making America the ‘crypto capital of the planet’ requires protecting the very builders who create the underlying technology.

Recent developments, such as a Texas judge ruling in April 2025 that Tornado Cash cannot be sanctioned again, may influence the ongoing legal proceedings against Storm. Yet, the DOJ remains firm in its stance, with officials like U.S. Attorney Damian Williams, Attorney General Merrick B. Garland, and FBI Director Christopher A. Wray emphasizing the severity of the charges and Tornado Cash’s role in laundering criminal proceeds and violating sanctions.

The case against Roman Storm could set a precedent for how open-source developers are treated under U.S. law, potentially affecting not just the cryptocurrency industry but also other sectors reliant on open-source software. As the debate rages on, the crypto community watches closely, hoping for a resolution that balances the need for security with the freedom to innovate. If coding were a crime, half of Silicon Valley would be behind bars, and we’d be left with a world that’s less free, less innovative, and frankly, less cool.

Key Takeaways and Questions

  • What actions does the DeFi Education Fund want President Trump to take?

    The DeFi Education Fund wants President Trump to discontinue the Department of Justice’s case against Roman Storm and protect American software developers from similar legal actions.

  • What are the charges against Roman Storm?

    Roman Storm is charged with conspiracy to facilitate money laundering, conspiracy to operate an unlicensed money transmitter, and violating U.S. sanctions.

  • Why does the DeFi Education Fund consider the DOJ’s case against Storm problematic?

    The DeFi Education Fund views the case as an overreach that threatens open-source development and innovation by holding developers liable for how others use their code, contradicting previous Treasury guidance.

  • What potential impact could the prosecution of developers like Storm have on other industries?

    The prosecution could stifle innovation in fields such as financial technology, artificial intelligence, and healthcare by deterring developers from creating open-source solutions due to fear of legal repercussions.

  • Who has signed the petition in support of Roman Storm?

    Over 253 industry leaders have signed the petition, including Ethereum core developer Tim Beiko, Paradigm co-founder Matt Huang, and Bankless co-founder Ryan Sean Adams.