Tornado Cash Co-Founder Warns of Potential Destruction of DeFi
Tornado Cash co-founder Roman Storm issued a stark warning against the Trump administration’s Department of Justice, stating that if federal prosecutors succeed in his upcoming criminal trial, decentralized finance (DeFi) could face permanent destruction.
Storm expressed his concerns, stating that the DOJ’s efforts to control DeFi by adding Know Your Customer (KYC) requirements and blocking expert witnesses in his trial could spell the end of financial freedom and the ideals he believed in.
“If I lose, DeFi dies with me,” Storm emphasized. “The dream of financial freedom, the code I believed in—it all fades into darkness. This isn’t just my end; it’s ours.”
In 2023, Storm was charged by the DOJ with conspiracy to commit money laundering, operating an unlicensed money transmitter business, and evading U.S. sanctions for his involvement in Tornado Cash—a service that allows users to obfuscate their on-chain transactions. While such platforms are favored by privacy advocates, they have also been utilized by criminal organizations and adversaries like North Korea.
Earlier this year, the DOJ disbanded its crypto enforcement unit under President Trump’s direction, signaling a shift in policy. However, Storm’s hopes for a pardon were dashed when the DOJ announced its intention to proceed with the case against him, albeit dropping one charge related to registration requirements.
DeFi advocates argue that prosecuting software developers for how their technology is used is unjust. The conviction of another Tornado Cash developer in the Netherlands further fueled these concerns.
Despite recent pro-DeFi actions by President Trump, including repealing an IRS rule and supporting legislation for decentralized finance protocols, the prosecution of figures like Storm could undermine DeFi’s core principles.
When asked about the Trump administration’s stance on DeFi, Storm referenced a legal filing by the DeFi Education Fund, which emphasized that developers should not be held criminally responsible for the actions of individuals using their software for illegal activities.
Edited by James Rubin