Roman Storm, founder of privacy tool Tornado Cash, has warned that open source developers could face retroactive criminal risks from US prosecutors for creating non-custodial financial software.
His message has resonated throughout the crypto community as his own legal fight moves forward. Reports have revealed a mixed jury result in Manhattan and a high-stakes debate over whether publishing code can amount to running a money-transmitting business.
Storm asked DeFi developers: “How can you be sure that the Department of Justice will not charge you as a money services company for creating a non-custodial protocol?
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Developers warned of retroactive risk
According to court filings and public statements, Storm argued that U.S. law gives little protection to people who publish software that others use to transfer funds. Based on reports, prosecutors called Tornado Cash a scheme that had been used to launder more than $1 billion.
Just a question for current DeFi developers:
How can you be sure that you won’t be charged by the DOJ as an MSB – for building a non-custodial protocol – and then accused that you should have built it as a custodian protocol instead?
If SDNY can charge a developer for creating a non-custodial protocol…
who is…— Roman Storm 🇺🇸 🌪️ (@rstormsf) October 18, 2025
The Storm team responded, saying that the protocol was non-custodial (the software does not hold users’ funds) and that blaming builders for users’ crimes would serve as a disincentive to honest open source work.
Tornado: jury divided on charges brought in Manhattan
The jury was unable to reach agreement on other, more serious charges. The U.S. attorney’s office described broad illicit use of the tool, while the defense focused on the technical facts: No one person controlled the protocol in the same way a bank controls accounts.
Defense attorneys filed motions seeking acquittal and asked judges to weigh whether code creators can be punished for how third parties use their work.
The legal community is sounding the alarm
Based on reports, lawyers and commentators, including noted crypto legal experts, warn that the case could set a broad precedent if prosecutors’ theory holds.
Some community members organized a fundraiser to help cover the Tornado Cash founder’s legal costs. Others argue that the issue touches on free speech, since publishing code can be a form of expression, and that criminal liability of authors would change the number of people who write and share software.
Defense movements and technical arguments
The Storm team emphasizes decentralization and non-custodial design. They argue that the protocol code runs on public blockchains and that no one was operating a service that held funds in the ordinary sense.
Recent court filings emphasize these themes and ask the judge to overturn the guilty verdict. Prosecutors counter that when tools are designed and promoted in a way that predicts illicit use, legal liability can follow.
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