Crypto Industry Urges Trump to Intervene in Tornado Cash Case

Crypto Industry Appeals to Trump for Intervention in Tornado Cash Case

More than 65 cryptocurrency and blockchain companies and advocacy groups have appealed to former US President Donald Trump to intervene in the case of Tornado Cash co-founder Roman Storm, as federal prosecutors appear to be preparing for a retrial. In a letter addressed to Trump, dated Thursday and shared with Cointelegraph, advocacy organizations including the Solana Policy Institute, the Blockchain Association, and the DeFi Education Fund, among others, outlined several requests related to crypto-related policies. The groups requested Trump to direct the IRS and US Treasury to clarify tax policy on digital assets, shield DeFi from regulatory overreach, and foster regulatory clarity through financial regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Notably, the letter also requested Trump to “urge the Department of Justice to dismiss all open charges against Roman Storm” and support overturning his conviction for operating an unlicensed money transmitting service. “Recognizing that Storm’s work on Tornado Cash represents the publication of open-source software – not a financial crime,” the letter stated. “Dropping the case would reaffirm the Administration’s commitment to protecting developers. Doing so will further support that code is speech under the First Amendment and signals that the US will protect innovation.”

Background of the Case

Storm was found guilty in federal court of operating an unlicensed money transmittal business, one of three charges he faced. The jury was unable to reach a verdict on the other two charges: conspiracy to commit money laundering and conspiracy to violate sanctions. Storm, indicted in August 2023 on the three felony charges, pleaded not guilty. He consistently maintained his innocence, echoing the rallying cry of many of his supporters: “Writing code is not a crime.” Approximately two weeks after the verdict, a Justice Department official spoke at a summit organized by the cryptocurrency advocacy group American Innovation Project. Matthew Galeotti, the acting assistant attorney general for the Justice Department’s criminal division, stated that “merely writing code, without ill intent, is not a crime.” Despite Galeotti’s comments, Jay Clayton, the interim US attorney for the Southern District of New York, filed a motion with the court on November 12 to oppose Storm’s motion for acquittal. As of Thursday, the parties are scheduled to return to court for a conference to discuss the matter on January 22, and no sentencing hearing for the single conviction has been scheduled.