Most Influential: Roman Storm
Despite a shift toward crypto regulation, Roman Storm's trial highlights ongoing 'regulation by prosecution' for Tornado Cash developers.Summary
The 2025 return of Donald Trump brought optimism for crypto regulation, but the trial of Tornado Cash developer Roman Storm demonstrated that 'regulation by prosecution' persists in the absence of clear rules. Storm was charged with conspiracy to commit money laundering, violate U.S. sanctions, and operate an unlicensed money transmitting business for his role in creating the privacy mixer. While his co-founder, Alexey Pertsev, was convicted in the Netherlands, Storm pleaded not guilty, arguing the code was a neutral tool, like a hammer. The jury found Storm guilty only of the least serious charge—conspiracy to operate an unlicensed money transmitting business—and could not agree on the others.
The case drew significant backlash from the DeFi community, which views the prosecution as overreach that chills innovation, fearing developers could be held liable for third-party misuse of neutral software. While Deputy Attorney General Todd Blanche's memo suggested a narrowing of enforcement focus, the Department of Justice (DOJ) proceeded with Storm's case, leading critics to argue that public statements are insufficient without permanent legislative fixes, such as those being negotiated in a market structure bill.
Experts noted the cognitive dissonance in lawmakers focusing on consumer protection while failing to pass bills that protect DeFi developers. Furthermore, the conflict between the DOJ's interpretation and the Treasury's stance on money transmitters creates legal uncertainty. Storm's legal team continues to fight the conviction, emphasizing the severe personal toll on Storm and arguing that regulating through criminal prosecution is inappropriate, hoping to secure an acquittal on the remaining charges.
(Source：CoinDesk)