The short answer: yes, it's possible to go blind from drinking moonshine. But it's also possible to go blind staring at the sun. When consuming alcoholic beverages of the DIY variety, the important thing is to let common sense be your guide.
The idea that moonshine or other home-distilled liquors can cause blindness is rooted in truth, but it's important to separate the causes of said blindness from the alcohol distillation process itself. When homemade spirits cause damage to the optic nerve the culprit is almost always methanol, cousin to the ethanol you consume when you toss back any glass of tipple.