Paradigm Files Amicus Brief in Support of Tornado Cash Co-Founder Roman Storm
Paradigm, a leading venture capital firm in the crypto space, has taken a stand in support of Tornado Cash co-founder Roman Storm by filing an amicus brief in federal court. The brief argues that Storm cannot be convicted without clear evidence that he knowingly operated a money-transmitting business.
The filing, made public on June 13, requests that the court instruct the jury on the specific criteria that must be met for Storm to be convicted under federal money transmission laws. Paradigm contends that there must be proof that Storm knowingly operated a business that controlled user funds, charged fees for transactions, and knowingly processed funds tied to criminal activity.
The crux of Paradigm’s argument lies in the interpretation of FinCEN guidance, specifically pointing to statements issued in 2019 by the Treasury Department. These statements clarify that developers without control over funds are not considered money transmitters. Paradigm asserts that holding a software developer criminally liable for the actions of others, when the developer had no control over the funds and only created open-source code, is fundamentally flawed.
Storm’s role in the Tornado Cash project, according to Paradigm, was limited to publishing open-source, self-custodial software. This distinction is crucial in determining his legal culpability in the case.
In a blog post accompanying the amicus brief, Paradigm’s legal team warned of the broader implications of allowing the charges against Storm to proceed. They cautioned against allowing unelected prosecutors to reinterpret criminal statutes and potentially threaten individuals with imprisonment for following established regulatory guidance.
The concerns raised by Paradigm are shared by industry executives, including Matt Huang, co-founder of Paradigm, who has publicly called for the dismissal of the case. Other prominent figures in the crypto space, such as Ethereum core developer Tim Beiko and Bankless co-founder Ryan Sean Adams, have also expressed support for Storm.
The case against Storm has become a focal point in the ongoing debate over how U.S. law treats open-source development. The prosecution has drawn criticism for potentially criminalizing code-writing itself, a stance that has been challenged by various stakeholders in the crypto community.
Storm’s trial is set to begin on July 14 in the U.S. District Court for the Southern District of New York. The outcome of this case could have far-reaching implications for the future of open-source development in the crypto industry.