Crypto Leaders Pledge $1.75M for Tornado Cash Co-Founder’s Legal Battle
Roman Storm, co-founder of Tornado Cash, is getting unprecedented support from crypto leaders after a Manhattan jury found him guilty...
Quick overview
- Roman Storm, co-founder of Tornado Cash, was found guilty of running an unlicensed money transmitting business, with federal prosecutors planning to retry unresolved charges.
- The Ethereum Foundation has pledged significant financial support, donating $500,000 and matching community donations, potentially raising total legal aid to $1.75 million.
- Storm's conviction raises concerns in the crypto community about the implications for privacy technology and developer accountability in the face of regulatory enforcement.
- The case highlights the tension between innovation in decentralized finance (DeFi) and the application of money transmission laws, which critics argue could hinder legitimate privacy tools.
Roman Storm, co-founder of Tornado Cash, is getting unprecedented support from crypto leaders after a Manhattan jury found him guilty of running an unlicensed money transmitting business. The jury delivered the verdict on Wednesday, finding Storm guilty on one count and deadlocked on two others—money laundering and sanctions violations. Federal prosecutors will retry those charges.
The Ethereum Foundation is the biggest backer, donating $500,000 and matching up to another $500,000 in community donations. They did the same in June, donating $500,000 and matching $750,000.
DeFi Fund Executive Director Amanda Tuminelli said the Department of Justice “made a ton of mistakes” and urged prosecutors not to retry the unresolved charges.
Key Donations and Pledges
Crypto folks argue Storm’s conviction will kill privacy tech. They say Tornado Cash was a decentralized protocol with no custody or control over funds.
Notable:
- Ethereum Foundation: $500,000 in June, $500,000 in August, and matching.
- Community donations: Matching could bring total legal aid to $1.75 million.
- Famous voices: Solana founder Anatoly Yakovenko said the software only transmitted signed user messages without modification.
Crypto Privacy Implications
Storm’s case has become the focal point of the debate over whether software developers can be held liable for their code. Many in the crypto space think punishing developers for bad actor behavior sets a bad precedent.
The trial has also brought up the balance between regulatory enforcement and technological innovation. Critics say broad application of money transmission laws will stifle DeFi and discourage legitimate privacy tools.
In 2023, federal authorities accused Storm of facilitating over $1 billion in illicit crypto transactions, including transfers linked to North Korea’s sanctioned Lazarus Group. Sentencing is pending and Storm’s team is preparing an appeal.
As the crypto community comes out in full force with financial and moral support, the outcome of his appeal will determine developer accountability—and the boundaries of privacy tech—in the digital asset space.
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