Authorities Demands Storm's Luxury Houses & Tesla SUV
US prosecutors are seeking the forfeiture of Tornado Cash co-founder Roman Storm's assets, including two Washington state homes valued at $3.1 million and a 2022 Tesla Model Y, alleging they were purchased with illicit funds.
Storm faces charges of conspiracy to commit money laundering, operating an unlicensed money-transmitting business, and violating US sanctions.
His indictment reads:
“Claiming to offer the Tornado Cash service as a 'privacy' service, the defendant in fact knew that it was a haven for criminals to engage in large-scale money laundering and sanctions evasion.”
This legal battle has drawn sharp criticism from crypto privacy advocates, who argue it threatens the future of open-source and privacy-focused software.
Friendly reminder while Bitcoin pumps that there are two VITAL ongoing court cases that could use some of your sats to help them defend your right to privacy, transacting p2p, and free speech.#FreeRomanStorm: https://t.co/gj0jYi5k7L#FreeSamourai: https://t.co/TzusXIHzhg https://t.co/jWt8t4Ov17
— Seth For Privacy | #FreeSamourai #FreeRomanStorm (@sethforprivacy) November 11, 2024
Storm's trial, initially set for 2 December, has been delayed to April 2025.
In the meantime, he is actively seeking donations for his defence , which could cost $500,000 per month according to an organisation supporting him and fellow Tornado Cash developer Alexi Pertsev.
Folks, plz help. The trial got delayed. Time == legal fees. Every small 0.00001 eth tx counts.
Namaste 🙏 https://t.co/TQMOHO3Rhp
— Roman Storm (@rstormsf) November 12, 2024
Pertsev was sentenced in May to five years in prison for laundering $2.2 billion via the crypto mixer.
Court filings show prosecutors tying one of Storm's properties, last sold for $1.3 million in 2021, directly to proceeds from his alleged crimes.
Storm's legal team, however, has argued that creating Tornado Cash is a form of free speech protected under the First Amendment.
The US arrested Tornado Cash developer for simply writing code that was used by others for nefarious purposes.
There is NO 1st amendment anymore. Code is speech.
— Toby Cunningham (@sircryptotips) September 1, 2024
Yet, Judge Katherine Failla of the Southern District of New York denied a motion to dismiss the case in September, expressing doubts about the strength of this defence.
She said:
“It is true that computer coding can be expressive conduct protected by the First Amendment.”
She also added:
“But when a programmer is using a code to direct a computer to perform various functions, that code is not protected speech.”
Crypto Privacy Supporters Criticise the Case as An Attack on Privacy Technologies
Crypto advocates have strongly criticised Judge Katherine Failla's position in the Tornado Cash case, viewing it as a direct threat to software developers' freedoms.
Amanda Tuminelli, chief legal officer at the DeFi Education Fund, noted:
“We believe the responsibility for third party criminal use of open- source software should lie with those third parties who intentionally use tools for illicit purposes, not the creator of the neutral tool.”
Jake Chervinsky, Chief Legal Officer at crypto venture fund Variant, described the legal argument as "an assault on the freedom of software developers everywhere."
Judge Failla's ruling denying @rstormsf's motion to dismiss the indictment is an assault on the freedom of software developers everywhere.
This will go down in history as a perversion of law and a travesty of justice.
And it will go down on appeal, if that's what it takes.
— Jake Chervinsky (@jchervinsky) September 26, 2024
While free speech protections differ between the Netherlands and the United States, a Dutch court similarly rejected Tornado Cash developer Alexi Pertsev's defence, ruling that he was obligated to monitor and block illicit financial transactions on the platform.
Judge Henrieke Slaar expressed:
“Tornado Cash in its nature and functioning is a tool intended for criminals. The criminal user is fully facilitated.”
Pertsev is currently appealing his conviction, but his request for release to prepare his appeal was denied by a Dutch judge in July.
Exactly two years after my arrest in Amsterdam, I’m back behind bars, appealing a 5-year sentence. This fight isn’t just about me; it’s about our privacy rights and the future of software developers.
Please join this legal battle and donate via Juicebox.
#freealexpertsev pic.twitter.com/NPCVf37bo6
— Alexey Pertsev (@alex_pertsev) August 10, 2024
The case underscores growing tensions between legal frameworks and the rights of developers in the crypto industry, raising questions about accountability and the boundaries of innovation.