Paradigm Backs Tornado Cash Developer with $1.25M as Legal Battle Intensifies

Crypto venture firm Paradigm is backing Roman Storm, co-founder of Tornado Cash, with a $1.25 million donation toward his legal defense.

Matt Huang, the firm’s co-founder, warned that prosecuting developers for how their software is used sets a dangerous precedent that could impact innovation beyond crypto.

Authorities accuse Storm and his co-founder Roman Semenov of enabling illicit financial activity through their Ethereum-based crypto mixer. Prosecutors allege over $1 billion was funneled through Tornado Cash, including funds linked to North Korea’s Lazarus Group. Storm faces up to 45 years in prison if convicted.

Storm argues he simply wrote open-source code for privacy-focused, non-custodial transactions and is now being punished for it. His case comes amid a broader debate over the legal implications of privacy tools.

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While a recent U.S. court ruling reversed sanctions on Tornado Cash, a New York court refused to dismiss the charges against Storm, asserting that some aspects of the platform remained modifiable after 2020.

Storm’s prosecution has sparked outcry from the crypto community, with Ethereum co-founder Vitalik Buterin among those urging President Donald Trump to intervene—especially after Trump pardoned Silk Road’s Ross Ulbricht.

The outcome of this case could shape the future of privacy-focused technology and open-source software development, setting a precedent for how regulators treat decentralized platforms.

Alexander Stefanov