In a high-profile legal case against Roman Storm, co-founder of Tornado Cash, the venture capital firm Paradigm has filed an amicus brief, highlighting legal aspects of the case.
Paradigm's Position in the Case
Filed in a New York district court on June 13, Paradigm argues that the jury must understand what constitutes a money-transmitting business under U.S. law. For Storm to be convicted, the government must prove he knowingly operated a money transmission service, a claim Paradigm contends is absent in his situation.
Risks for Software Developers
In a blog post, Paradigm's chief legal officer Katie Biber and general counsel Gina Moon highlighted how the government's interpretation conflicts with established legal standards. They cited guidance issued during the Obama administration in 2014, noting that creating and publishing code does not equate to transmitting funds. They cautioned that allowing prosecutors to reinterpret these definitions could set a dangerous precedent.
Broader Implications for Innovation
Paradigm argues that the case has far-reaching implications beyond the crypto sector. If Storm is found guilty, it could deter developers, AI engineers, and other technologists from contributing to projects due to the fear of prosecution. They likened the logic behind the charges to punishing a wallet maker for stolen money.
The trial for Roman Storm is set to begin on July 14. This case is seen as a critical precedent that could directly impact the future of developers in the tech field.
