A Cry for Clarity: DeFi Education Fund Urges Trump Administration to End DOJ's Crackdown on Open-Source Crypto Developers
Open-Source Crypto Developers Under Attack: Key Figures in Cryptocurrency Sector Call upon Trump Administration to Halt DOJ's Campaign Against Open-Source Developers
In a bold move, the DeFi Education Fund has penned a letter to the White House, urging President Trump's Crypto Czar to take immediate action against the Biden-administration Department of Justice's (DOJ) alleged relentless campaign to prosecute open-source cryptocurrency developers. The letter follows the ongoing legal battles surrounding Tornado Cash co-founder, Roman Storm.
On Monday, the DeFi Education Fund shared this fiery missive, addressing concerns over the Southern District of New York's (SDNY) ongoing prosecution of Storm, with charges related to money transmitting and other liabilities that could punish the Tornado Cash co-founder for actions of unrelated bad actors.
The SDNY's approach, according to the DeFi Education Fund, is an attempt to hold software developers criminally liable for the conduct of unknown third parties, a theory that threatens the foundation of technological innovation and could potentially halt crypto development in the US.
"No developer should fear prosecution for the actions of strangers," states the letter.
The Tornado Cash Controversy
The letter's background lies in the Treasury Department's Office of Foreign Assets Control (OFAC) sanctioning Tornado Cash in 2022 for failing to impose effective controls preventing malicious actors from laundering funds through the protocol. This resulted in a November court ruling determining that the US Treasury had exceeded its authority by sanctioning the platform.
Tornado Cash was ultimately removed from OFAC’s Specially Designated Nationals (SDN) list in March 2025. However, Storm and Tornado Cash developer, Alexey Pertsev, were detained following the sanctions, with the latter serving a 5-year sentence in the Netherlands after being found guilty of money laundering by the s-Hertogenbosch Court of Appeals in May 2024.
Meanwhile, Storm pleaded not guilty to all charges and was freed on a $2 million bond to await his trial, initially scheduled for December 2024. However, it was delayed to April 14, 2025, before being postponed again to July 2025. If convicted, he could face up to 45 years in prison.
Several industry leaders, including Ethereum's co-founder, Vitalik Buterin, have voiced concerns about the case's implications for crypto developers and have contributed to Storm's and Pertsev’s legal defense.
Contradictory Guidance and Implications
According to the DeFi Education Fund, the SDNY's actions contradict previous guidance regarding the status of self-custodial, peer-to-peer (P2P) protocols, which developers have relied on since 2019. The letter stresses that the DOJ's ongoing persecution of Storm goes against long-standing guidance issued by the Treasury Department's Financial Crimes Enforcement Network (FinCEN), which for years has provided clarity that developers of self-custodial, peer-to-peer protocols are not considered money transmitters.
The letter has been signed by Paraadigm's CEO Matt Huang, COO Alana Palmedo, and CLO Katie Biber, among others.
The case's outcome may hinge on whether courts distinguish between writing code and actively managing financial services. A ruling against Storm could set a concerning precedent for open-source projects in the crypto space, while an acquittal might reinforce protections for developer autonomy.
[1] Tornado Cash co-founder facing 45 years in prison for money laundering[2] Tornado Cash delisted by OFAC[3] DeFi Education Fund Urges Trump Administration to Halt DOJ's Crackdown on Open-Source Crypto Developers[4] Tornado Cash's Defenders Prepare for Long Legal Battle[5] SDNY forced to reverse course after ruling OFAC's Tornado Cash sanctions illegal
- The DeFi Education Fund, in a recent letter to President Trump's Crypto Czar, called for an end to the Biden-administration Department of Justice's (DOJ) ongoing prosecution of open-source cryptocurrency developers, citing the ongoing legal battles surrounding Tornado Cash co-founder, Roman Storm, as a prime example.
- The Sanctioned Tornado Cash, in 2022, was removed from OFAC’s Specially Designated Nationals (SDN) list in March 2025 following a court ruling determining that the US Treasury had exceeded its authority by sanctioning the platform.
- Despite the removal from the SDN list, Tornado Cash developer, Alexey Pertsev, served a 5-year sentence in the Netherlands after being found guilty of money laundering, while Tornado Cash co-founder, Roman Storm, pleaded not guilty to all charges and is awaiting trial, initially scheduled for July 2025.
- The ongoing legal battles have raised concerns within the crypto industry, including Ethereum's co-founder, Vitalik Buterin, who has voiced concerns about the case's implications for crypto developers and has contributed to Storm’s and Pertsev’s legal defense.
- The DeFi Education Fund argues that the SDNY's approach threatens the foundation of technological innovation in the US and contradicts previous guidance regarding the status of self-custodial, peer-to-peer (P2P) protocols, which developers have relied on since 2019. The letter stresses that the DOJ's ongoing persecution of Storm goes against long-standing guidance issued by the Treasury Department's Financial Crimes Enforcement Network (FinCEN).
