In 2022, the United States Office of Foreign Assets Control (OFAC) imposed sanctions on the Tornado Cash cryptocurrency mixer, alleging its involvement in facilitating money laundering activities. Tornado Cash developer Roman Storm has found himself at the center of legal battles but has received support from the well-known crypto enthusiast Vitalik Buterin.

OFAC and Sanctions on Tornado Cash

The United States Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash in 2022. The reasons cited include the service's involvement in facilitating money laundering. These sanctions aim to restrict the use of Tornado Cash for laundering purposes.

Support from Vitalik Buterin

Vitalik Buterin, the co-founder of Ethereum, recently contributed an additional 100 Ether (approximately $240,000) to the legal defense fund for Tornado Cash developer Roman Storm. This marks the third occasion on which Buterin has extended his support to Storm. The crowdfunding initiative known as Defend Roman Storm has received 148 contributions totaling over 327 ETH, equivalent to around $785,000 at current market rates. Roman Storm expressed heartfelt gratitude for the generous contribution, stating, 'I can’t describe how much it means to me. Thank you for your long-lasting support.'

Legal Case against Roman Storm

On September 26, 2024, U.S. District Judge Katherine Failla ruled against Storm’s motion to dismiss the case, allowing it to move forward. Judge Failla emphasized that the charges against Storm are not unfounded. Storm has pleaded not guilty and argues that Tornado Cash is open-source software accessible to anyone and not under the control of its developers. If found guilty on all three charges, he faces a potential maximum sentence of 45 years in prison.

Despite the sanctions and complex legal proceedings, Tornado Cash continues to attract significant deposits. The support from the crypto community for Tornado Cash developers, such as Roman Storm, remains substantial. These events underscore the growing importance of cryptocurrency regulation and its implications for decentralized projects.