Vitalik Buterin Champions Privacy as Tornado Cash Developer Awaits Jan. 26 Verdict

Ethereum's co-founder just threw his weight behind the crypto privacy fight—right as a key developer faces a legal reckoning.

The Stakes for Self-Custody

Buterin's public support isn't just philosophical. It's a direct counterpoint to the regulatory pressure bearing down on privacy tools. The argument? True financial sovereignty means the ability to transact without surveillance—a core promise of decentralized finance that now faces its toughest test.

Why This Verdict Matters

January 26 isn't just another court date. The outcome could set a precedent for how code is treated under the law. Is writing privacy-preserving software a crime, or a fundamental developer right? The answer will either chill innovation or embolden builders to push boundaries further.

The Finance Angle (With a Jab)

Meanwhile, traditional finance continues to treat privacy like a dirty word—unless, of course, it's their own opaque offshore vehicles. The hypocrisy is almost as impressive as their fee structures.

The verdict will land in days. It won't just decide one developer's fate—it'll signal whether privacy has a future in the open ledger economy, or if we're building glass houses for everyone to watch.

Tornado Cash devs caught in the storm of privacy, illicit use and regulators

Tornado Cash came under sanctions from the U.S. Department of the Treasury in August 2022.

Prosecutors alleged it had processed illicit funds, enabling hackers like the North Korea-affiliated Lazarus Group to launder stolen funds.

However, in March 2025, the same department, via its Office of Foreign Assets Control (OFAC), removed Tornado Cash from its list of Specially Designated Nationals and Blocked Persons (SDN List).

Cofounder Alexey Pertsev was sentenced to 64 months in prison by a Dutch court after it found him guilty of money laundering under its laws. However, he is currently appealing that ruling. Roman Semenov, the third co-founder, is currently at large while he faces the same charges as Storm in the U.S.

Storm’s defense says that he had no custody or control over funds after the protocol’s deployment, while prosecutors contend that he knew criminals were using the platform and continued to profit from its operation.

In his appeal for community support, Storm wrote, “They argued that writing code is a crime. They compared privacy tools to money laundering. But we know the truth: Privacy is a human right. Math is not a crime.”

He added, “The fight for my freedom – and for the future of open-source software – is at a critical moment. I need your voice to show the world that this community stands together” while also directing supporters to submit letters through a LINK he shared in the same post.

Buterin’s letter was in response to that call.

US regulatory stance has shifted

Storm has seen some key wins coinciding with President Trump’s return to office in the United States. For example, U.S. In December 2024, the Fifth Circuit Court of Appeals ruled that OFAC exceeded its authority by sanctioning Tornado Cash smart contracts.

More recently, in August 2025, Department of Justice (DOJ) official Matthew Galeotti informed crypto industry leaders that federal prosecutors WOULD no longer pursue charges under the specific statute Storm was convicted of violating when targeting decentralized software developers.

The ethereum Foundation and Keyring Network have launched a joint initiative redirecting protocol fees for two months to Storm and Pertsev’s legal defense fund, supplemented by an additional $500,000 from the Ethereum Foundation.

Are crypto developers safe?

Buterin’s letter stated that privacy protections taken for granted in the pre-digital era are now under threat.

“This is not a radical viewpoint – usually, it is simply asking for protections that existed by default in the world of 1950, where our physical locations, our conversations and our dollars were not tracked by anyone,” he wrote.

The entire privacy tech and developer community has a lot riding on Storm’s sentencing. However it plays out, it will certainly be a reference point for subsequent cases of developer liability in the U.S.

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