Ethereum Donates $500,000 to Defend Tornado Cash Developer – A Case That Could Change Everything

The crypto world is on edge. The Ethereum Foundation has stepped up to support the legal defense of Roman Storm, co-founder of the controversial Tornado Cash protocol, announcing a $500,000 contribution just days after a federal jury found Storm guilty on one count of a three-part indictment. He now faces up to five years in prison, and possibly more if prosecutors retry the other charges. 🧾 “Privacy is normal. Writing code is not a crime,” said Ethereum Foundation Executive Director Wei Wang.

Legal advocacy groups have warned that the outcome of this case could set a global precedent for open-source developers.

Charged for Writing Code? The Legal Battle Over Tornado Cash Storm’s case stems from his role in developing Tornado Cash — a crypto mixer that enables anonymous transactions by blending users’ funds together. The U.S. Treasury claims that since 2019, the protocol has been used to launder over $7 billion, including funds allegedly moved by North Korea’s Lazarus Group. Federal prosecutors painted Storm as someone who profited from concealing criminal activity, while his defense insists Tornado Cash was designed as a privacy tool for ordinary users, not criminals.

Are Developers Under Siege? Code at the Center of Legal Attacks Many legal experts are raising serious concerns, warning that U.S. authorities may be overreaching by applying money laundering laws to developers who merely write open-source code and don’t control user funds. A prominent crypto attorney called the verdict “a dark day for DeFi” and argued that Section 1960 should not apply to non-custodial protocol developers. He urged the courts to overturn what he sees as a dangerous legal misstep. Meanwhile, Roman Storm has appealed for more support. In July, he requested an additional $1.5 million, citing rapidly escalating legal fees and a defense team working “around the clock” during the intense three-week trial.

Rising Pressure on Crypto Mixer Developers This week, the founders of another crypto mixer — Samourai Wallet — pleaded guilty to similar charges. They now face up to five years in prison, with U.S. officials claiming the wallet was used to launder over $100 million, calling it a “haven for large-scale money laundering and sanctions evasion.” Roman Storm’s ongoing legal saga is shaping up to be a landmark case for digital privacy, open-source development, and the future of permissionless technology.

#TornadoCash , #Ethereum , #ETH , #Cryptolaw , #Regulation

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“