Ethereum Foundation and Keyring Network Unite to Fund Tornado Cash Developers' Legal Defense

The Ethereum Foundation and Keyring Network have launched a novel initiative to support the legal defense of Tornado Cash developers Roman Storm and Alexey Pertsev. This joint effort aims to pioneer a sustainable, open-source legal funding model, with initial contributions coming from protocol fees generated by Keyring's new zkVerified permissioned vaults. The campaign underscores a growing industry concern over the potential criminalization of open-source code.

Key Takeaways

• The Ethereum Foundation and Keyring Network have partnered to create a legal defense fund for Tornado Cash developers.

• Protocol fees from Keyring's zkVerified permissioned vaults will initially fund the initiative.

• The campaign aims to establish a sustainable model for supporting privacy-focused developers.

• Tornado Cash developers Roman Storm and Alexey Pertsev are currently facing legal challenges.

A New Model For Open-Source Legal Defense

The newly launched initiative seeks to "pioneer open-source legal defense funding." A significant aspect of this model is that protocol fees collected from the first two months of Keyring's ZkVerified permissioned vaults will be directly allocated to the legal defense funds of Storm and Pertsev. This approach aims to link the growth of new financial tools with the protection of the developers who create them.

Alex McFarlane, CEO of Keyring Network, stated, "We believe privacy is a fundamental right, and that open-source developers should not face criminal liability for writing code." He added that by donating early protocol fees, Keyring signals that its zkVerified DeFi can uphold compliance, safety, and privacy while supporting the builders of these technologies.

The Legal Battles of Tornado Cash Developers

Roman Storm was found guilty of a money transmitting charge over the summer, though a jury could not reach a verdict on money laundering and sanctions charges. Alexey Pertsev was previously sentenced to 64 months in prison by a Dutch court for facilitating $1.2 billion in money laundering through the crypto mixer between July 2019 and August 2022. Both developers are currently pursuing appeals.

Industry Support and Broader Implications

This initiative represents a significant industry response to the legal challenges faced by privacy-focused developers. Multiple crypto advocates and organizations have previously donated to the legal defenses of Storm and Pertsev. The Solana Policy Institute donated $500,000 in August, and the Ethereum Foundation had already pledged $500,000 for Storm's legal defense. The case is seen by many in the crypto community as setting a dangerous precedent for criminalizing developers for writing open-source code. The outcome could shape the future of privacy-preserving protocols in decentralized finance.

Key Takeaways

• Ethereum Foundation and Keyring launch legal defense fund for Tornado Cash developers, The Block.

• Eth. Foundation, Keyring Network Back Tornado Cash Developers, Cryptonews.

• Ethereum Foundation, Keyring Launch DeFi Fund for Tornado Cash, BeInCrypto.