DeFi Fund Urges Trump to Halt DOJ Prosecution of Tornado Cash Developer Amid Industry Backlash
The DeFi Education Fund, a leading crypto advocacy group, has formally appealed to former President Donald Trump to intervene in the Department of Justice’s prosecution of Roman Storm, co-founder of the Tornado Cash crypto mixer. Storm is facing charges of facilitating more than $1 billion in alleged illicit transactions, with another Tornado Cash co-founder still at large and his trial scheduled for July 2025. The Fund argues that prosecuting open-source developers for actions by platform users threatens U.S. crypto innovation and contradicts earlier FinCEN guidance from Trump’s first term, which stated that developers of non-custodial, peer-to-peer tools are not money transmitters. The appeal, supported by 232 industry figures including representatives from Coinbase, Paradigm, and Ethereum, highlights broader industry concerns over regulatory overreach and references a Texas federal court ruling that Treasury exceeded its authority in sanctioning Tornado Cash. The group thanks Trump for expressing support for U.S. crypto leadership, warning that continuing such prosecutions could hinder the country’s ambitions to be a ’cryptocurrency capital.’ Ongoing issues of fund mismanagement in the sector, such as allegations against Bankera’s founders, further underscore the importance of clear legal precedent on developer liability. The outcome of Storm’s case may set a crucial precedent for the future of open-source crypto development in the United States.
Neutral
The news centers on the DeFi Education Fund’s appeal to Trump to halt the DOJ’s prosecution of Tornado Cash developer Roman Storm, reflecting widespread industry concern over regulatory impact on open-source innovation. While the letter signals strong industry unity and increased political lobbying—which could improve sentiment if favorable outcomes arise—it does not immediately change Tornado Cash’s legal risks or its token’s trading fundamentals. The continuation of the legal case preserves ongoing uncertainty, and no concrete resolution or regulatory relief is provided in this update. Thus, there is no immediate bullish or bearish signal for Tornado Cash or related DeFi tokens; traders should monitor further political or legal developments for clearer market direction.