Venture capital giant Paradigm has filed a formal amicus curiae brief in defense of Roman Storm, co-founder of Tornado Cash, as his federal trial approaches on July 14 in New York. The case is emerging as a pivotal moment for the future of open-source software development in the United States.
Paradigm Warns of Precedent for Software Developers
In its legal filing, Paradigm strongly criticized the government’s position that Storm’s code constitutes an illegal money-transmitting service, stating that this interpretation is inconsistent with federal law, FinCEN guidance, and decades of case law.
“The irrationality and unfairness of these charges cannot be overstated,” Paradigm said, highlighting that the Treasury has long recognized developers who publish software as not being money transmitters.
Amicus Brief: Burden of Proof Must Be Clear
Paradigm’s amicus brief argues that the prosecution must prove beyond a reasonable doubt that:
- Storm knowingly operated a money-transmitting business,
- He transmitted funds on behalf of the public, and
- He knew the specific funds involved were tied to criminal activity.
The firm stressed that the jury must be properly instructed on these legal thresholds or risk undermining fundamental developer protections under U.S. law.
Charges, Fundraising, and Industry Support
Storm was charged in 2023 with money laundering, sanctions violations, and conspiracy in relation to Tornado Cash — a non-custodial, decentralized privacy tool on Ethereum. In recent developments, prosecutors dropped one charge of operating an unlicensed money service, but are proceeding with remaining allegations tied to laundering and sanctions violations.
Storm is raising $2 million for his legal defense and received a $500,000 donation from the Ethereum Foundation.
“If I lose, DeFi dies with me,” Storm wrote on X, asserting his belief in decentralized financial freedom and the right to build permissionless software.
Regulatory Context: OFAC and Sanctions History
The U.S. Treasury’s OFAC had sanctioned Tornado Cash in 2022, citing concerns over illicit finance. However, the sanctions were lifted in March 2025, adding further complexity to the case.
The outcome of this trial could reshape the legal boundaries for open-source developers, particularly in the blockchain and Web3 space.
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