Bitcoin Magazine Podcast The Criminalization of Privacy: Tornado Cash Guilty Verdict Analysis w/ Peter Van Valkenburgh
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Aug 7, 2025 
Joining the discussion is Peter Van Valkenburgh, Executive Director of Coin Center and a legal expert in cryptocurrency regulation. He dives into the Tornado Cash trial verdict, unpacking its drastic implications for financial privacy and open-source development. The conversation explores potential appeals and the need for clearer regulations surrounding privacy technologies. Peter also addresses the challenges developers face amid increased surveillance, advocating for protective measures to ensure innovation isn't stifled by legal uncertainties.
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Flaws in Money Transmission Charge
- The unlicensed money transmission charge against Tornado Cash developer Roman Storm is legally flawed and too broad.
- The court expanded the definition of transmission beyond FinCEN's 2019 guidance, making almost all DeFi developers vulnerable without licenses.
Appeal Strengths for Storm
- Appeals focus on law rather than facts, favoring Storm because the issue is legal, not factual.
- Storm's defense can argue due process and First Amendment violations due to regulatory confusion and software publishing rights.
Samurai Developers' Guilty Plea
- Samurai developers pled guilty under pressure from a harsh legal environment despite questionable law.
- Taking the plea deal was a practical decision to avoid harsh penalties, not legal precedent.