Ethereum News Today: Ethereum Foundation Pledges $500K to Fund Tornado Cash Co-Founder's Legal Appeal

The Ethereum Foundation has pledged to support Roman Storm, a co-founder of Tornado Cash, by matching up to $500,000 in community donations to fund his legal appeal following a recent conviction on a federal charge. The foundation announced its commitment through co-executive director Wei Wang, who emphasized the principle that "privacy is normal, and writing code is not a crime." This move underscores the foundation's long-standing advocacy for privacy-preserving technologies and its broader support for legal defenses in the crypto space [1].

Storm was found guilty in early August by a Manhattan jury on a charge of operating an unlicensed money transmitter, though the jury deadlocked on two more serious conspiracy charges related to money laundering and sanctions violations. The case has drawn significant attention within the blockchain industry due to its potential implications for developers and the legal status of decentralized software protocols. Prosecutors argued that Storm knowingly enabled Tornado Cash to be used by criminal actors, while his defense maintained that the protocol operates autonomously, with no mechanism allowing developers to control or restrict transactions [1].

The Ethereum Foundation has previously contributed $750,000 to Storm’s legal defense fund, including an earlier $500,000 commitment and a matching pledge that spurred further community contributions. The current round of fundraising is part of a broader effort to address the mounting legal costs associated with the ongoing appeal. Storm’s legal team has highlighted the high expenses related to expert witnesses, research, and ongoing court filings. Earlier in July 2025, he requested $1.5 million from the crypto community to cover immediate needs, and an additional $500,000 in early July for a “critical shortfall” ahead of the trial [1].

The outcome of this case is seen as potentially setting a significant legal precedent for developers worldwide, especially in the decentralized finance (DeFi) sector. A number of jurors reportedly rejected the idea of criminal liability for developers who cannot control how their code is used. This has sparked concern within the crypto community about the potential overreach of criminal laws into software development. Jake Chervinsky, a legal advocate for the crypto industry, described the conviction as “a sad day for DeFi” and warned against the extension of U.S. money transmission laws to non-custodial protocols [1].

The Ethereum Foundation’s decision to support Storm’s appeal reflects a broader ideological stance on the role of open-source software and privacy in the digital economy. It also highlights the growing intersection between legal systems and decentralized technologies. As the appeal process unfolds, the case will likely continue to attract attention from both legal scholars and industry participants who view it as a critical test of how traditional laws apply to modern blockchain innovations.

Source: [1] Ethereum Foundation backs convicted Tornado Cash co-founder with $500K pledge (https://invezz.com/news/2025/08/08/ethereum-foundation-backs-convicted-tornado-cash-co-founder-with-500k-pledge/)