Ethereum News Today: Ethereum Foundation Doubles Legal Support for Tornado Cash Founder Amid Retrial Uncertainty

Roman Storm, co-founder of the Tornado Cash privacy protocol, is receiving increasing support for his legal defense as the possibility of a retrial emerges. A partial verdict in his trial, delivered on August 3, 2025, saw him convicted of operating an unlicensed money transmitter, while the jury remained deadlocked on the other charges. This outcome leaves the U.S. Department of Justice (DOJ) with the decision to pursue retrials on the remaining counts [1].

In response to the legal uncertainty, the Ethereum Foundation has pledged to match up to $500,000 in donations to Storm’s legal defense fund. Later, another report revealed the Foundation had increased its commitment to $1 million, underscoring the broader concern within the crypto community about the criminalization of privacy-enhancing technologies [2]. The defense team has highlighted that Tornado Cash is an open-source protocol, and its misuse by third parties should not be attributed directly to its developers [1].

Legal experts are closely watching how the case progresses, particularly the appeal process. Brandon Ferrick, general counsel at Douro Labs, noted that the legal application of Section 1960 — the statute under which Storm was convicted — has been a point of controversy. He suggested that the government may be hesitant to retry the case on the money laundering charge, given shifting political dynamics [1]. Meanwhile, attorney Aaron Brogan noted the unpredictability of the DOJ’s approach, especially considering the agency’s continued focus on criminal prosecutions despite a generally lighter regulatory approach under the Trump administration [1].

The case has sparked a larger debate over the responsibilities of software developers in the decentralized finance (DeFi) space. Advocates argue that open-source developers should not face the same legal risks as traditional financial institutions, especially when their tools are misused by others. Critics, however, emphasize that developers bear some responsibility for the consequences of their creations [1]. If retried, Storm could face decades in prison, a potential outcome that has galvanized legal aid groups and crypto stakeholders to rally around his defense [1].

Vitalik Buterin, co-founder of Ethereum, has amplified the message of the Ethereum Foundation, stating that “privacy is normal, and writing code is not a crime.” This sentiment has been echoed by the DeFi Education Fund and other industry stakeholders, who view Storm’s case as a pivotal moment in shaping legal frameworks for blockchain and DeFi [1].

With legal costs mounting and public support growing, the defense team is preparing for a potential retrial. The outcome of this case may set a precedent not only for how U.S. courts handle charges against DeFi developers but also for how privacy-focused protocols are regulated globally [3]. As the crypto community remains engaged, the case continues to highlight the tension between traditional legal doctrines and the evolving nature of decentralized technology [4].