Ethereum Developer Testifies in Tornado Cash Trial as Defense Begins

TLDR

Table of Contents

Preston Van Loon said he used Tornado Cash to send 43 ETH to avoid becoming a hacker target.
The defense called Van Loon to show Tornado Cash served as a privacy tool, not just for crime.
Prosecutors questioned Van Loon about his relationship with Storm and his use of Coinbase.
Roman Storm faces charges including money laundering and violating US sanctions.

The U.S. Department of Justice officially rested its case against Roman Storm, co-founder of Tornado Cash, on Wednesday, July 24, 2025. The trial, held in the Southern District of New York, moved into the defense phase shortly afterward. Storm faces charges of conspiracy to launder money, operate an unlicensed money transmitting business, and violate U.S. sanctions.

Prosecutors argue that Tornado Cash enabled the laundering of illicit funds, including transactions tied to North Korea’s Lazarus Group. The defense maintains the tool was intended to protect user privacy and operated as a decentralized service.

Government Presents Internal Messages

Before concluding its case, the prosecution introduced internal communications between Storm, co-founder Roman Semenov, and others involved with Tornado Cash. These messages were used to suggest the developers maintained control over the protocol and were aware of its use in unlawful activity.

Eleanor Terrett, a journalist who attended the trial, reported excerpts from these chats. In one, Roman Storm responded to the idea of implementing Know Your Customer (KYC) protocols by stating: “Such suggestions make me fucking scream with laughter.”

In another message, Storm wrote: “Show me a DeFi project that has true decentralization. Show me a project that doesn’t have some centralization.”

Semenov was also quoted in a message about handling stolen funds, stating: “It is possible to stop it as long as the governance makes the right decision.” The prosecution had a witness reread that line in court, but the defense objected, and Judge Katherine Failla sustained the objection.

These messages were presented to show that the Tornado Cash team may have had knowledge of potential misuse and retained some control over governance.

Defense Begins with Ethereum Developer Testimony

After the government rested, the defense began its case by calling Ethereum core developer Preston Van Loon to the stand. Van Loon described Tornado Cash as a privacy-enhancing tool for Ethereum users, not a platform designed for crime.

He testified that he used the service four times between 2019 and 2020, transferring a total of 43 ETH. Van Loon stated: “If [hackers] know the scope of my assets I can become a target.” He explained that using Tornado Cash provided a measure of personal safety by obscuring wallet details from public view.

The defense used Van Loon’s testimony to counter the prosecution’s claims by showing a legal use case for the tool. The defense argues that privacy tools like Tornado Cash can serve legitimate purposes for users in decentralized environments.

Upcoming Witnesses and Jury Instructions

Storm’s legal team is expected to call additional witnesses in the coming days, including medical professionals and a possible expert from blockchain analysis firm Chainalysis. They have also filed a motion requesting that Judge Failla revise the jury instructions to better explain the nature of Tornado Cash and its relation to sanctioned entities like the Lazarus Group.

Judge Failla has referenced other high-profile crypto cases during proceedings, including the 25-year sentence given to former FTX CEO Sam Bankman-Fried.

The defense is expected to conclude its case within the next two weeks. Storm remains on bail and faces possible prison time if convicted.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: