Tornado Cash Developer Roman Storm’s Conviction Raises Concerns Over Privacy and Developer Liability in Crypto Industry

Key Points

1. Roman Storm was convicted on August 6, 2025, for his role in Tornado Cash, facing a potential 5-year sentence for unlicensed money transmission.

2. The ruling could set a precedent for holding developers liable for the misuse of their open-source software, threatening innovation in decentralized finance (DeFi).

3. Tornado Cash, a privacy tool for masking cryptocurrency transactions, was sanctioned by the US over money laundering concerns, leading to its delisting in March 2024.

4. Industry groups like the Blockchain Association and Crypto Council for Innovation are advocating for legal clarity and potential appeals, arguing the case could criminalize developers and harm tech leadership.

5. The Ethereum Foundation pledged $500,000 to support Storm's legal expenses, highlighting the case's significance for the crypto community.