Ethereum Foundation Backs Tornado Cash Co-Founder's Legal Defense with $500K Pledge

The Ethereum Foundation has pledged a significant $500,000 to support the legal defense of Roman Storm, co-founder of Tornado Cash. This contribution, along with a commitment to match an additional $750,000 in community donations, comes as Storm faces charges related to operating a crypto mixer, highlighting a broader debate on privacy and code development in the crypto space.

Ethereum Foundation Steps Up for Roman Storm

The Ethereum Foundation announced its substantial financial commitment to Roman Storm's legal defense on June 13. This move underscores the foundation's stance that "Privacy is normal, and writing code is not a crime." The donation aims to aid Storm, who is facing charges of conspiracy to commit money laundering, conspiracy to violate US sanctions, and conspiracy to operate an unlicensed money-transmitting business.

Key Takeaways

• The Ethereum Foundation has committed $500,000 to Roman Storm's legal defense and will match up to an additional $750,000 in community donations.

• Storm's trial is set to begin on July 14 in New York, where he faces potential charges that could lead to a 45-year prison sentence.

• Storm has publicly appealed for community support, emphasizing that his case has significant implications for the future of decentralized finance (DeFi).

• This support follows similar pledges from the Ethereum Foundation for other Tornado Cash developers, including Alexey Pertsev, who was found guilty of money laundering.

The Looming Trial and Its Implications

Roman Storm's trial is scheduled to commence on July 14 in New York. He is seeking to raise approximately $2 million for his defense. The charges against him, if proven, could result in a prison sentence of up to 45 years. While prosecutors have indicated they may drop the charge of operating an unlicensed money-transmitting business, the core allegations of money laundering and sanctions violations remain.

Storm has maintained his innocence throughout the legal proceedings, arguing that the case has broader implications for the DeFi ecosystem. In a recent social media post, he stated, "If I lose, DeFi dies with me. The dream of financial freedom, the code I believed in—it all fades into darkness."

Community and Industry Support

The Ethereum Foundation's donation is not an isolated incident of support for Storm. Advocacy groups such as Coin Center, the DeFi Education Fund, and the Blockchain Association have filed amicus briefs in his case, highlighting the potential repercussions of a conviction on the wider crypto industry. Prominent figures like Ethereum co-founder Vitalik Buterin and Paradigm founder Matt Huang have also contributed to the legal funds of Tornado Cash co-founders, signaling a unified front against what many perceive as a threat to privacy and open-source development.

Sources

• Ethereum Foundation Donates $500,000 To Tornado Cash Co-Founder’s Legal Defense, Bitcoinist.com.

• Ethereum Foundation Pledges $500K To Roman Storm’s Defense, Cointelegraph.

• Ethereum Foundation donates $500,000 to Tornado Cash co-founder Roman Storm's defense ahead of July trial |The Block, The Block.