Paradigm Defends Roman Storm in Tornado Cash Case That Could Decide the Future of Open-Source Crypto Code

Tue Jun 17 2025
Paradigm files legal brief supporting Tornado Cash co-founder Roman Storm, arguing U.S. prosecutors are trying to criminalize code. Here’s why this case could redefine DeFi and software development.

🧑‍⚖️ “If I Lose, DeFi Dies”: Paradigm Defends Tornado Cash Dev in Explosive U.S. Crypto Case

Roman Storm isn’t just fighting for his freedom. He’s fighting for the right to write code — and Paradigm just took his side in one of the most important crypto trials ever.


⚡ What’s Going On?

Roman Storm, co-founder of Tornado Cash, is facing federal charges in the U.S. for allegedly “operating an unlicensed money transmitting business.”

📍 Law used: 18 U.S.C. §1960 — normally meant for shadow banks and cash mules 💾 His actual crime? Publishing open-source code that lets people transact peer-to-peer on Ethereum

Yes — the U.S. government is trying to criminalize code.


🛡️ Enter Paradigm: “This Is Absurd”

Crypto VC giant Paradigm just filed an amicus brief (legal defense assist) saying:

“The prosecution is irrational and unfair.”

They argue:

  • 🧠 Developers aren’t money transmitters
  • 💼 Storm never had control or custody of users’ funds
  • 🛠️ Tornado Cash is just a tool — not a financial intermediary
  • 🧑‍💻 Writing code ≠ committing a crime

It’s like charging Apple for what people text. Or Sony for what’s on your TV.


⚠️ Why This Case Could Reshape Everything

If SDNY’s prosecution succeeds…

  • 👨‍💻 Open-source devs could face criminal charges
  • 🔓 Non-custodial apps = treated like financial institutions
  • ⚖️ Regulatory guidance from FinCEN, Treasury, DOJ? Tossed out the window

Paradigm warns: this could kill DeFi, chill innovation, and criminalize neutral code across crypto, AI, and fintech.


🧑‍⚖️ What Paradigm Wants the Jury to Know

To convict Roman Storm, the jury must be told:

✅ He must have knowingly run a money-transmitting biz ✅ He must have transmitted funds for others ✅ He must have had control over those funds

If these aren’t proven beyond a reasonable doubt, the case falls apart. Anything else = rewriting the law by brute force.


📅 What’s Next?

🗓️ Trial date: July 14, 2025 🎯 Goal: Raise 2 million for legal defense 🛠 Supported by: Ethereum Foundation, Paradigm, and the crypto dev community 🧵 Storm’s own words:

“If I lose, DeFi dies with me.”

This case is bigger than Tornado Cash. It’s about whether writing neutral, non-custodial code is a protected act — or a federal offense.


🧭 TL;DR

⚖️ Roman Storm is being prosecuted for publishing open-source DeFi code 🧠 Paradigm defends him, calling charges legally flawed and dangerous 📜 U.S. law + Treasury guidance clearly say: writing code ≠ transmitting money 🚨 Case could criminalize neutral dev tools, set precedent for AI, fintech, and Web3 📅 Trial starts July 14 — the future of DeFi, open-source, and crypto devs hangs in the balance

In 2025, the fight for freedom isn’t about money — it’s about code.

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