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Home»Legal»Tornado Cash’s Roman Storm heads to trial in blockbuster crypto case
Legal

Tornado Cash’s Roman Storm heads to trial in blockbuster crypto case

NBTCBy NBTC27/03/2025No Comments6 Mins Read
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According to The Wall Street Journal, federal agents arrested Roman Storm, a 35-year-old software developer, at gunpoint in August 2023 at his home in Auburn, Washington, as part of a criminal investigation tied to his involvement in Tornado Cash, a controversial crypto mixer that ran on Ethereum.

Roman is now heading to trial this July 14 in Manhattan, charged by the U.S. Attorney’s Office for the Southern District of New York with three criminal counts—conspiracy to launder money, conspiracy to violate sanctions, and conspiracy to operate an unlicensed money-transmitting business. He faces up to 45 years in prison.

The arrest came nearly nine months after Roman sat down voluntarily with federal investigators in New York in November 2022 to answer questions about Tornado Cash.

Prosecutors allege that Roman and his co-founders knowingly allowed criminals to funnel over $1 billion in stolen crypto through the platform, which masked the origin and destination of transactions.

One of those users, according to the Justice Department, was Lazarus Group, a North Korean hacking crew already under U.S. sanctions.

Trump allies say charges never would’ve happened under his watch

Roman’s case started under the Biden administration, but it’s now being fought in a different political environment. Several of Roman’s supporters, including top players in the crypto industry, say this prosecution wouldn’t be happening if Donald Trump had been president back then. They want Trump to shut the whole thing down.

Brian Klein, Roman’s attorney, told The Wall Street Journal, “We don’t think this case ever would have been brought now. This was brought when Biden had declared war on crypto.” The same U.S. Attorney’s Office behind Roman’s charges also filed the bribery case against New York Mayor Eric Adams, which the Trump administration is now trying to dismiss.

Support from the crypto community has been loud. Matt Huang, co-founder of Paradigm, said, “Roman is being unfairly prosecuted. Software developers shouldn’t be threatened with criminal sanctions for building neutral infrastructure, which is what Tornado Cash was. You wouldn’t throw Tim Cook in prison because criminals use iPhones.” Paradigm also paid $1.25 million for Roman’s legal defense and brought up the case at Trump’s White House crypto summit earlier this month.

Roman co-founded Tornado Cash with Roman Semenov and Alexey Pertsev. Semenov was also charged by the U.S., but he hasn’t been caught. Pertsev was arrested in the Netherlands in 2022 and was convicted of money laundering by a Dutch court in 2023. Tornado Cash isn’t the only crypto mixer prosecutors have targeted, but its structure was different. Unlike earlier mixers that had centralized operators, Tornado Cash functioned through autonomous smart contracts on Ethereum. Once it was deployed, Roman says, it couldn’t be turned off.

Prosecutors say Roman kept the engine running for profit

Prosecutors don’t buy Roman’s claims that Tornado Cash ran on its own. In court filings, they said Roman and his co-founders didn’t just write code—they ran a website, maintained a relayer network, and made money from TORN tokens that were tied to the project. They described Tornado Cash as a business, not just software.

In September 2023, U.S. District Judge Katherine Polk Failla rejected Roman’s attempt to get the case thrown out. She wrote that, “The Tornado Cash enterprise was not an altruistic venture.” That means Roman is now heading into trial with all three charges still on the table.

Roman said most Tornado Cash users weren’t doing anything illegal. In an interview with The Wall Street Journal, he said the tool gave people privacy in situations where they needed it. For example, Roman said people used Tornado Cash to donate crypto to Ukrainian aid efforts without risking retaliation from Russian authorities.

But prosecutors said he also ignored signs that criminals were moving stolen funds through the tool. When crypto companies reached out asking him to stop specific transactions, they said Roman refused. He told The Wall Street Journal, “I gave my honest answer. Some people assumed that I had some sort of backdoor control or that I could freeze some funds and stop it somehow. But no, I don’t.” Roman said he felt “really bad” about those situations, but he had no way to change the outcome.

Crypto’s watching as trial date nears and pressure mounts

Roman’s story didn’t begin in crypto. He was born in Chelyabinsk, a Russian industrial city. He moved to the U.S. in 2008, became a U.S. citizen, and later worked at Cisco and Amazon before switching to blockchain development. Tornado Cash became one of the most well-known tools in the privacy corner of crypto. But the turning point came in March 2022, when hackers drained over $500 million from the game Axie Infinity and sent a big chunk of that crypto through Tornado Cash.

Federal investigators say they traced that hack to Lazarus Group, and when Roman found out, he messaged his co-founders, “Guys, we are f—ed.” That message is now part of the evidence being used against him. Prosecutors say it shows he knew exactly what was happening and didn’t stop it.

Roman’s arrest in August 2023 came long after he met with investigators in November 2022 to cooperate. He was out on bail shortly after the arrest and has been staying in the same Auburn house where the feds first grabbed him.

The U.S. government’s argument is simple: Roman helped create and maintain a tool that criminals used to hide billions in dirty money, and he didn’t do enough to stop it. But crypto developers say this case is an attack on the idea of open-source coding, especially when it involves privacy. They see it as a threat to building neutral, permissionless tools.

Even though the SEC under Trump has backed off its crypto regulation lawsuits, the Justice Department is still chasing down people it says are breaking criminal laws. Roman’s trial is where those two forces are about to crash into each other.

On Friday, the pressure increased after the Treasury Department officially lifted the sanctions on Tornado Cash. Those sanctions had been put in place by Biden’s Treasury, but they were overturned in November 2024 after a judge said they overstepped federal authority.

Now, with the sanctions gone, Trump in office again, and the trial just months away, Roman’s case is being watched by everyone in crypto. The outcome could decide how far the U.S. will go to hold coders responsible for what people do with the tools they create.

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NBTC is the editorial account for NBTC News, covering Bitcoin, Ethereum, DeFi, blockchain infrastructure, exchanges, mining, regulation and digital asset markets. The editorial team focuses on clear sourcing, timely updates and practical context for crypto readers.

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