Ethereum News Today: Ethereum Foundation Pledges $1M for Tornado Cash Developer Legal Defense After Guilty Verdict

The Ethereum Foundation has pledged $1 million to support the legal defense of Roman Storm, a co-founder of the privacy-focused Ethereum-based tool Tornado Cash, following his recent conviction on charges of operating an unlicensed money transmitting business [1]. The guilty verdict, handed down by a Manhattan jury on August 6, 2025, highlights the growing legal and regulatory scrutiny faced by decentralized finance (DeFi) and privacy-centric tools [2].

This financial commitment from the Ethereum Foundation includes matching community donations and reflects a broader stance in defense of privacy rights and open-source development [3]. Roman Storm has consistently advocated for the rights of developers, arguing that writing code should not result in criminal liability, especially when the code is used in ways the developer did not intend.

“Privacy is normal, and writing code is not a crime,” stated Hsiao-Wei Wang, Co-Executive Director of the Ethereum Foundation, underscoring the organization’s position on the issue [4]. The Ethereum Foundation is seen as a key player in the blockchain ecosystem and its support of Storm has reinforced the ideological divide between regulatory bodies and the decentralized technology community.

Tornado Cash, which enables users to obscure the origins of their crypto transactions, has been repeatedly associated with illicit financial activities, including the laundering of stolen funds [5]. However, many within the crypto community argue that holding developers accountable for how third parties use their tools could hinder innovation in the blockchain space.

The financial backing provided by the Ethereum Foundation underscores its broader commitment to defending open-source developers and the principles of financial privacy. Vitalik Buterin, co-founder of Ethereum, has also expressed public support for Ethereum initiatives, reinforcing the community’s stance on balancing developer accountability with the potential for tool misuse [6].

The case is being closely watched by legal and policy observers for the potential precedent it may set in defining responsibility in the development and use of blockchain-based tools. The Ethereum Foundation’s actions also reflect a growing trend among crypto organizations to offer direct financial and legal support to individuals facing charges linked to their association with controversial protocols.

The legal battle involving Roman Storm may influence future developments in the DeFi sector and the regulatory frameworks surrounding privacy-enhancing technologies. As the debate continues, the Ethereum Foundation’s stance is expected to shape similar decisions by other blockchain organizations navigating similar legal uncertainties.

Source:

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

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

[3] https://intellectia.ai/news/crypto/eth-foundation-pledges-1m-for-tornado-cashs-roman-storm-post-guilty-verdict

[4] https://m.economictimes.com/crypto-news-today-live-08-aug-2025/liveblog/123173392.cms

[5] https://crypto.news/vitalik-buterin-eth-treasury-firms-ethereum-2025/

[6] https://crypto.news/hands-on-with-underwear-and-eth-what-vitaliks-laundry-routine-can-teach-us-stacking-wealth/