Tornado’s Roman Storm Questions DOJ’s Stance on DeFi Prosecutions

Roman Storm, one of the developers behind the Tornado Cash privacy protocol, has raised concerns about the future of open-source development in decentralized finance (DeFi). Storm questioned whether other software developers could face retroactive prosecution by the U.S. Department of Justice (DOJ) for simply building decentralized platforms.

In a public statement, Storm asked a pointed question to fellow DeFi developers: “How can you be so sure you won’t be charged by the DOJ as a money service business for building a non-custodial protocol?” 

His comments reflect growing anxiety in the crypto and open-source communities following his own legal troubles.

Developers Fear Legal Uncertainty

Storm warned that the DOJ could argue any decentralized, non-custodial service should have been designed as a custodial one, the same argument that led to his conviction. In his September 30 motion for acquittal, he stated:

“Our company does not have any ability to affect any change, or take any action, with respect to the Tornado Cash protocol. It is a decentralized software protocol that no one entity or actor can control.”

Tornado Cash, an Ethereum-based protocol, allows users to obscure the origins of cryptocurrency transactions, enhancing privacy. However, U.S. authorities have long argued that it can be used to launder illicit funds, which led to Storm’s indictment and partial conviction earlier this year.

Storm Case: A Legal Precedent for Open Source

In August, a jury found Storm guilty of conspiracy to operate an unlicensed money transmission business. However, they failed to reach a unanimous verdict on two other charges, money laundering and sanctions violations. 

The split decision sparked debate among legal experts and crypto advocates, many of whom fear the case could set a dangerous precedent for open-source development.

Jake Chervinsky, chief legal officer at Variant Fund, criticized the potential for a retrial on the unresolved charges. “If the Trump administration wants the USA to be the crypto capital of the world, then the DOJ must not be allowed to retry the two deadlocked charges,” he wrote on X.

However, Matthew Galeotti, acting assistant attorney general for the DOJ’s criminal division, signaled in August that the department would not pursue further prosecution in Storm’s case. 

“Our view is that merely writing code, without ill intent, is not a crime,” Galeotti said at the American Innovation Project Summit. He added that prosecutors “will not use indictments as a law-making tool,” emphasizing the need to give innovators clarity rather than fear.