Crypto venture capital firm Paradigm has pledged $1.25 million to aid Roman Storm, co-founder of the Ethereum-based crypto mixer Tornado Cash.
Crypto venture capital firm Paradigm has pledged $1.25 million to aid Roman Storm, co-founder of the Ethereum-based crypto mixer Tornado Cash, in his ongoing legal battle against U.S. prosecution.
Storm is facing serious charges from the U.S. Department of Justice, including allegations of facilitating money laundering related to over $1 billion in illicit funds.
The case has raised significant concerns within the crypto community, with Paradigm co-founder Matt Huang emphasizing that the prosecution could hold software developers accountable for the actions of third parties.
Huang stated on social media platform X that such a precedent could have a chilling effect on innovation in the crypto space.
Storm and his co-founder Roman Semenov were charged in 2023, with prosecutors claiming that their platform was used for money laundering connected to various criminal activities, including those associated with the North Korean cybercrime group Lazarus. If convicted, both developers could face sentences of up to 45 years in prison.
In a recent post, Storm described the charges as a “terrifying criminalization of privacy,” asserting that he is being prosecuted for creating an open-source code that allows for private transactions.
Despite a recent court ruling that reversed sanctions against Tornado Cash, a New York court denied Storm’s motion to reconsider the legal actions against him.
The court acknowledged arguments that Tornado Cash's smart contracts were immutable but noted that other aspects of the service were subject to modifications. Storm's trial is scheduled for April 14, 2025, amid ongoing discussions in the crypto community regarding the case’s implications for privacy and software development.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
