Ethereum News Today: Ethereum Foundation Allocates $1.5M to Support Tornado Cash Developer's Legal Defense

The Ethereum Foundation has pledged up to $1.5 million in legal support for Roman Storm, co-founder of the privacy-focused protocol Tornado Cash, following his conviction on unlicensed money transmission charges in a Manhattan court on August 6, 2025. The foundation announced it would contribute $500,000 directly and match up to an additional $500,000 in community donations, highlighting its commitment to defending open-source developers against legal action for code creation [1]. Hsiao-Wei Wang, Co-Executive Director of the Ethereum Foundation, stated, “Privacy is normal, and writing code is not a crime,” reflecting the organization’s broader stance on the matter [2].

Tornado Cash, a decentralized tool designed to obscure the origins of cryptocurrency transactions, has been associated with instances of illicit activity, including the laundering of stolen assets. Critics argue that such tools can be exploited for criminal purposes, while defenders emphasize that criminalizing their creators could suppress innovation and contradict the principles of open-source development [3]. Roman Storm has consistently maintained that developers should not bear criminal liability for unintended uses of their code, a position that has gained traction within the Ethereum community.

Vitalik Buterin, co-founder of Ethereum, has publicly supported Storm’s defense, underscoring a growing consensus within the ecosystem about the importance of privacy and the rights of protocol developers. The Ethereum Foundation’s actions are part of a broader trend in the crypto space, where organizations increasingly offer legal and financial backing to individuals facing regulatory challenges tied to controversial technologies [4]. Legal experts are closely watching the case, as its outcome could set a precedent for how accountability is defined in the development and deployment of blockchain-based tools.

The legal battle has sparked concerns about the future of privacy protocols and DeFi innovation, with industry stakeholders fearing that increased regulatory scrutiny could stifle technological progress. The case also highlights the tension between regulatory bodies and the decentralized technology community, which values autonomy and freedom of code. If courts continue to hold developers responsible for the unintended misuse of their tools, it could have a chilling effect on innovation in the DeFi and privacy sectors [5].

As the case moves forward, the Ethereum Foundation’s stance will serve as a critical reference point for both proponents and critics of decentralized finance. The outcome may influence future regulatory approaches to privacy-enhancing technologies and shape the broader legal landscape for decentralized applications.

Source:

[1] https://cointelegraph.com/news/roman-storm-legal-fund-influx-defense-retrial

[2] https://www.mexc.com/news/ethereum-foundation-backs-tornado-cash-developer-with-500k-legal-defense-fund/64262

[3] https://www.ainvest.com/news/ethereum-news-today-tornado-cash-founder-convicted-1b-laundering-scheme-2508

[4] https://www.bitdegree.org/crypto/news/roman-storms-legal-defense-gets-500000-boost-from-ethereum-foundation

[5] https://www.cointribune.com/en/ethereum-goes-all-in-to-defend-roman-storm-in-landmark-legal-battle/