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Paradigm warned that allowing the prosecution of Roman Storm to proceed could let unelected prosecutors redefine criminal statutes through software development, bypassing Congress and threatening individuals with imprisonment despite their compliance with established regulatory guidance

The Department of Justice issued a memo stating that criminal prosecution for operating an unlicensed money-transmitting business requires proof that a defendant knowingly and willfully violated registration laws; prosecutors dropped this charge against Roman Storm on May 15, 2025, following that guidance

Paradigm asserted that to convict Roman Storm, the jury must find beyond a reasonable doubt that he knowingly operated a money-transmitting business and specifically knew the funds transmitted were derived from criminal activity

Paradigm argued that prosecuting Roman Storm contradicts 2014 and 2019 FinCEN guidance, which states that software developers are not considered money transmitters unless they independently control user funds

Paradigm argued that the Southern District of New York’s interpretation of money transmission law in Roman Storm’s case wrongly equates open-source software development with financial activity, contradicting the plain text of the statute, FinCEN guidance and decades of case law

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