Ethereum Foundation Supports Tornado Cash Co-Founder
In a significant show of support, the Ethereum Foundation has announced its decision to donate $500,000 towards the legal defense of Roman Storm, one of the co-founders of Tornado Cash. Storm is currently facing serious allegations, including running the cryptocurrency mixing service as an unlicensed money transmitter.
Details of the Donation
The organization revealed its plans in a post on X this past Friday, stating that it would not only contribute the initial donation but also match any further contributions from the crypto community up to an additional $750,000. This announcement comes ahead of Storm’s anticipated trial in New York, set for July 14, where he will be charged with money laundering, conspiracy to operate without a license, and conspiracy to breach U.S. sanctions.
Privacy and Developer Rights
The Foundation emphasized the belief that
“privacy is normal and writing code is not a crime,”
reflecting a broader conversation about digital privacy and the rights of developers. Storm’s situation has garnered attention as U.S. regulatory measures and prosecutions surrounding cryptocurrencies evolve. Storm’s defense team previously attempted to have the case dismissed in December, citing a ruling that the U.S. Treasury’s Office of Foreign Assets Control had overstepped its jurisdiction in sanctioning the smart contracts associated with Tornado Cash.
Potential Impact of the Trial
As Storm prepares for trial, he took to social media to express his concerns, stating,
“The DOJ wants to bury DeFi, claiming I should have exercised control, implemented Know Your Customer (KYC) measures, or never created the service in the first place. If I am unsuccessful in my defense, it could spell the end for DeFi.”
Status of Other Developers
Meanwhile, another Tornado Cash developer, Roman Semenov, remains at large, with reports indicating he might be evading authorities in Russia. Another developer linked to the project, Alexey Pertsev, was apprehended in the Netherlands following U.S. sanctions levied against the mixing protocol. Pertsev was later convicted of money laundering and sentenced to over five years in prison. The Ethereum Foundation has also committed $1.25 million to his defense, grounded in similar arguments about privacy rights.
Community Support
Storm’s legal troubles have not gone unnoticed in the crypto community, drawing backing from various advocacy groups and industry leaders. Notable firms like Coin Center, the DeFi Education Fund, and the Blockchain Association have submitted amicus briefs urging for the charges against him to be dropped due to the potential precedent a conviction could set. Ethereum co-founder Vitalik Buterin and Paradigm founder Matt Huang have also stepped up, contributing to the legal funds for Storm and his fellow developers.
