Venture capital firm Paradigm has stepped forward in defense of Roman Storm, filing a sharp legal brief just weeks before his criminal trial begins on July 14.
The case targets Storm, co-founder of Tornado Cash, for alleged involvement in illegal financial activity—but Paradigm says the charges dangerously misinterpret existing law.
VC Giant Warns of Precedent Against Developers
Paradigm’s legal team argues that the government’s case against Storm stretches far beyond reason. Their brief insists the jury must find that Storm knowingly operated a money transmission service and processed criminal proceeds—claims Paradigm says lack grounding in legal precedent.
They state this isn’t just about one developer. A conviction, they argue, could expose anyone writing peer-to-peer software to similar risks.
Publishing Code ≠ Money Transmission, Says Paradigm
The Treasury Department and FinCEN have long clarified that publishing code isn’t the same as transmitting funds. Paradigm cites this history as a key reason the case should not proceed under current charges. They stress that the law protects open-source developers—Storm included.
Storm’s Trial Could Shape the Future of DeFi
The brief, filed as amicus curiae, allows Paradigm to weigh in as a third party. They believe the outcome could define how U.S. courts treat decentralized software in years to come.
If Storm loses, Paradigm warns, it could send a chilling message to developers across the crypto and DeFi landscape.
Source
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/paradigm-challenges-u-s-prosecutors-in-tornado-cash-case/