Tornado Cash Trial: Legal Ramifications for Developers

This chapter examines the verdict of the Tornado Cash trial, focusing on the mixed jury outcomes and the implications for software developers in the cryptocurrency sector. The speakers discuss the legal complexities surrounding unlicensed money transmission and the chilling effects on non-custodial software amid unclear regulations. Highlighting the need for clear legal standards, they express cautious optimism about the future of privacy in tech and the role of advocacy in reshaping regulations.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest in crypto. With special guests: Avichal Garg, Managing Partner at Electric Capital, and Tomasz K. Stańczak, Co-Executive Director at the Ethereum Foundation. This week we get into one of the most pivotal moments in Ethereum’s history — from the Tornado Cash verdict and its chilling implications for developers, to Wall Street’s growing embrace of ETH through the launch of ETHZilla. The crew unpacks how this trial could redefine developer liability, why Ethereum’s narrative is shifting toward institutional adoption, and what the next decade could look like for the world’s most versatile blockchain. Whether you’re here for the legal drama, the market moves, or the inside scoop from Ethereum’s top builders and investors, this episode delivers the sharp analysis, big-picture context, and unfiltered hot takes you’ve come to expect from The Chopping Block.

Show highlights

🔹 Tornado Cash Verdict Breakdown – Haseeb explains the mixed outcome: a conviction on one count, hung jury on the most serious charges, and what it means for Roman Storm’s future.

🔹 Developer Liability in the Spotlight – Why the case sends a chilling signal to open-source and privacy protocol builders across the U.S.

🔹 Inside the Appeal Strategy – How contradictions between DOJ arguments and FinCEN guidance could shape Roman’s path forward.

🔹 Avichal’s Optimistic Take – Why he believes the American legal and political system will ultimately land on the right side of crypto innovation.

🔹 Historical Parallels – Comparing today’s battles over smart contracts and AI to the legal fights over corporations and cryptography in centuries past.

🔹 ETHZilla Unveiled – Avichal introduces Electric Capital’s new Ethereum treasury vehicle, how it’s designed to work, and its potential impact on DeFi.

🔹 Wall Street Meets Ethereum – The crew explores how institutional capital could become a massive “supply sink” for ETH.

🔹 Potential Shakeouts Ahead – Why some public ETH vehicles may face activist investor pressure, M&A, or liquidation if they stay subscale.

🔹 Ethereum Foundation’s Vibe Shift – Tomasz shares how the EF is engaging more openly with the community, leaning into finance, and guiding ecosystem coordination.

🔹 Ethereum’s Resurgence – From legal fights to market dominance, why ETH feels unstoppable heading into its next decade.

Hosts

⭐️Haseeb Qureshi, Managing Partner at Dragonfly

⭐️Tom Schmidt, General Partner at Dragonfly

Guests

⭐️ Avichal Garg, Managing Partner at Electric Capital

⭐️ Tomasz K. Stańczak, Co-Executive Director at the Ethereum Foundation

⁠Disclosures⁠

Links

Beyond Stablecoins: The Case for Ethereum by Maria Shen and Sanjay Shah (Electric Capital)

https://electriccapital.substack.com/p/beyond-stablecoins-the-case-for-ethereum

Timestamps