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00:26:25 · 2 years ago
Podcast

Roman Storm Speaks - Tornado Cash Developer on What’s at Stake

Explore the pivotal case for digital rights with Tornado Cash developer Roman Storm, discussing the implications for software privacy and innovation.

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Inside the episode

In our latest episode, we delve into one of the most important cases for digital rights this decade. Roman Storm, a developer of Tornado Cash, joins us alongside his attorney, Keri Curtis Axel, to discuss the criminal charges he faces for developing open-source privacy tools on Ethereum. Arrested from his home in Seattle in August 2023, Roman now faces decades in prison—a chilling prospect for the crypto community and for the future of digital privacy.

This case raises pivotal questions:

  • Is code speech?
  • If bad actors misuse open-source code, are developers liable?
  • Do U.S. citizens have a right to digital privacy?

The answers to these questions will define the boundaries of cryptography, privacy, and innovation in the U.S. for years to come. And, as Roman’s lawyer emphasized, this case is not just about regulation—it’s about criminal enforcement, with the U.S. government leveraging its full weight against a single individual.


Roman’s Story: From Developer to Defendant

Roman’s journey began as a curious child in post-Soviet Russia, where his parents’ gift of a computer sparked a lifelong passion for technology. After immigrating to the U.S., he immersed himself in programming, determined to solve real-world problems and live the American dream. Tornado Cash was one such solution—a tool to provide privacy for blockchain transactions, addressing the Ethereum community’s need for anonymity in an open and immutable system.

But that innovation has now turned into a nightmare. On August 23, 2023, Roman’s home was raided by armed federal agents. He recalls the traumatic experience vividly: waking up to rifles pointed at him, his 3-year-old daughter witnessing the chaos, and his property being seized. Despite cooperating with the Department of Justice (DOJ) before his arrest, Roman now faces charges that could imprison him for up to 45 years.


Roman is charged with:

  1. Conspiracy to Commit Money Laundering (20-year max sentence)
  2. Conspiracy to Operate an Unlicensed Money Transmitting Business (5-year max sentence)
  3. Conspiracy to Violate the International Economic Emergency Powers Act (20-year max sentence)

His lawyer, Keri Curtis Axel, argues that these charges lack legal basis:

  • Money Services Business (MSB): Tornado Cash is decentralized, doesn’t control user funds, and charges no fees—disqualifying it as an MSB under the law.
  • Money Laundering: The government alleges negligence rather than intent, a dangerous precedent for criminal liability in open-source software.
  • Sanctions Evasion: The charges rely on the actions of third parties, like the Lazarus Group, with no connection to Roman.

Keri emphasizes that this case is about more than Roman—it’s about whether developers can be criminalized for creating software that others misuse.


What’s at Stake for Crypto

The implications of Roman’s case extend far beyond Tornado Cash.

If the government’s arguments succeed, any developer working on decentralized finance (DeFi) protocols could be held liable for their use, deterring innovation and crippling the crypto ecosystem. This would effectively outlaw immutability and openness, cornerstones of blockchain technology.

Roman’s defense has already achieved small victories, including challenging unconstitutional seizure of cryptocurrency stored in cold wallets. But the battle is far from over.


How You Can Help

Roman’s trial is set for April, and his legal defense requires substantial resources—an estimated $2 million to see the case through. Bankless has donated $50,000 to his legal fund and encourages the crypto community to join in supporting Roman.

Roman’s fight is our fight. It’s about protecting the fundamental right to privacy, ensuring developers can write open-source code without fear, and pushing back against government overreach.

As Roman said, “My life is literally at stake.”

Let’s stand with him. Let’s stand for privacy. Let’s stand for crypto.

Transcript
00:02
Ryan

We have a sobering episode today on Bankless.

00:05
Ryan

We have Tornado Cash developer Roman Storm on the podcast today. Now, Roman, you might remember, he was arrested from his Seattle home just over a year ago. This was in August of 2023. He was arrested for the development and deployment of Tornado Cash, which we've talked about on Bankless as an open source code. It was developed on Ethereum and it provides privacy for blockchain transactions. He now faces criminal charges in the United States and the prospects of decades in jail.

00:34
Ryan

Now, David and I think Roman's case is the most important case for digital rights of the 2020s, this decade,

00:42
Ryan

is code speech. If bad people use open source code to do bad things, do the developers of that code go to jail? Are U.S. citizens allowed to even have digital privacy over their economic transactions? All of those things are going to be decided in this case. And just also on a personal level, a man's life is at stake here.

01:05
Ryan

As you can see in today's conversation, the full weight of the U.S. government is being leveraged to prosecute Roman Storm. And so there's a massive power asymmetry here to correct for.

01:16
David

Roman's case is coming up in April and he needs funds for his legal defense. He doesn't have the money to fight this alone. We're hoping the crypto community can step up to fund him. We gave him $25,000 to Roman's case in the beginning of this year. And so in addition to that, we are also giving him another $25,000 after this recording and hope that you will also, listener, join us to support Roman and also our own fight to have a right to privacy in crypto, because that is also what is at stake in this case.

01:50
David

I don't know if we will win this fight.

01:53
David

The fight for the right to use cryptography in the United States has a long history of legal battles, which have all dictated the future of freedom and privacy in the United States. This is one of those cases and a moment when the crypto industry has the opportunity to shape the future in a very big way on the shoulders of Roman Storm and his fight against government overreach.

02:15
David

So this is Roman Storm with his lawyer on the Tornado Cache case and what's at stake.

02:21
Ryan

Bankless Station, I'm very pleased to introduce you to Roman Storm. He is the developer of Tornado Cash. We also have Carrie Curtis Alex. She is an attorney representing Roman's case at Waymaker. Carrie Roman, welcome to Bankless.

02:35
Roman Storm

Thank you.

02:36
Roman Storm

Thank you.

02:37
Ryan

Okay, so we got a few questions for you today. Um, first, I just want to ask Roman on like a personal level, how are you feeling? Like how are your spirits just overall?

02:49
Roman Storm

Hi, Brian. Hi, David.

02:52
Roman Storm

Hi, people who is listening right now.

02:55
Roman Storm

Thank you for asking. Honestly, every day I go

03:00
Roman Storm

through a wide spectrum of emotions, from confident and energized

03:04
Roman Storm

to isolated and frankly scared.

03:09
Roman Storm

Let's face it, I

03:11
Roman Storm

I find myself in a unique position with this federal indictment where I still struggle.

03:17
Roman Storm

To understand, like, why did I get arrested?

03:21
Roman Storm

And yet, my case will serve as a precedent for other programmers like myself.

03:26
Roman Storm

It's a huge responsibility, to be honest,

03:29
Roman Storm

uh, to carry this weight on my shoulders for over a year now.

03:33
Roman Storm

But

03:34
Roman Storm

what gives me hope is the support of our crypto community,

03:40
Roman Storm

uh, both spiritual and of course financial.

03:45
Roman Storm

Because my legal fight is

03:47
Roman Storm

everyone's fight.

03:49
Roman Storm

And to use Alexander Dumas' words that I like to quote all for one and one for all, right?

03:58
David

Uh Roman, uh people I think know you as the Tornado Cache developer. That's like how you are known in the space. Maybe you could just shed a little bit more light uh upon yourself. Who are you who are you and how'd you become a developer?

04:11
Roman Storm

Okay, sure.

04:12
Roman Storm

I may have shared this in the past, uh, but I think my journey towards software development began when my parents gifted me a computer at age about seven.

04:25
Roman Storm

Now, this was a very unusual gift because my peers in post Soviet Russia weren't able to have computers until high school or even college age.

04:37
Roman Storm

My parents were lower middle income, regular folks, but somehow they saw this potential in me, and I will be forever grateful to them for that.

04:48
Roman Storm

Afterwards, I'll basically learn everything I could about computers. I'll fix broken hardware and assemble Frankenstein computers from random scraps.

04:59
Roman Storm

I'll help my friends with software upgrades and virus protection until graduated

05:04
Roman Storm

high school.

05:07
Roman Storm

Later, I immigrated to the United States, specifically Silicon Valley, because I saw

05:16
Roman Storm

it as a capital of tech innovation and I wanted to be in this environment.

05:22
Roman Storm

After coming to the United States, I took programming courses at City College of San Francisco

05:28
Roman Storm

and did everything I could to get better at programming.

05:33
Roman Storm

I just wanted to solve problems that would improve people's lives.

05:37
Roman Storm

I was living the American dream.

05:41
Ryan

Uh you were living the American dream. Maybe, maybe that's in the in the past tense. Uh Roman, I'm I'm not sure what what that means now, but I I want to ask you on your developer journey, w why did you decide to develop Tornado Cash?

05:55
Roman Storm

That's a very tough question.

05:58
Roman Storm

But uh first,

05:59
Roman Storm

my lawyers say I have to be very careful to say that when you say tornado cash,

06:07
Roman Storm

I understand that you meant to refer to the software,

06:11
Roman Storm

specifically the smart contracts,

06:13
Roman Storm

which

06:14
Roman Storm

people call the tornado cache pools.

06:18
Roman Storm

And there have been a lot of interviews where I've told the story, but in short,

06:23
Roman Storm

The Ethereum community

06:25
Roman Storm

had been in need of a privacy tool for a lot of very legitimate reasons.

06:30
Roman Storm

Several events happened at the time that involved our team

06:34
Roman Storm

starting to work on it.

06:36
Roman Storm

And

06:39
Roman Storm

I'm sure your listeners have heard

06:42
Roman Storm

that I met with Alec Butyrin at uh if New York Hackathon, who suggested it.

Ryan Sean Adams

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