Ethereum News Today: Ethereum Foundation Pledges $500K for Tornado Cash Developer's Legal Defense

The Ethereum Foundation has committed $500,000 to support the legal defense of Roman Storm, a key developer of Tornado Cash, a non-custodial cryptocurrency mixer. The announcement was made on August 7, 2025, by Hsiao-Wei Wang, co-executive director of the Ethereum Foundation, who emphasized that “Privacy is normal, and writing code is not a crime.” This pledge aligns with the foundation's broader commitment to defending privacy rights and open-source innovation in the blockchain space [1].

Storm was convicted on July 31, 2025, for his role in operating Tornado Cash, which prosecutors allege was used to launder over $7 billion in illicit funds, including by North Korea’s Lazarus Group. However, Storm’s legal team maintains that the platform was designed to protect user privacy and not to facilitate illegal activity. The conviction raises concerns that it may establish a legal precedent criminalizing the development of privacy-focused tools, even when they are used for legitimate purposes [2].

The Ethereum Foundation’s $500,000 contribution is part of a larger fundraising effort to support the legal appeal, which aims to reach $1.25 million. Vitalik Buterin, Ethereum’s co-founder, had previously contributed 50 ETH to the cause. To date, over $4.7 million has been raised for the defense fund, according to the “Free Roman Storm” donation tracker [4]. Roman Storm could face up to five years in prison if the appeal is unsuccessful, and the legal team has warned that additional charges could lead to a much longer sentence.

The case has sparked broader debates within the cryptocurrency community about the regulatory treatment of open-source developers and the future of decentralized finance (DeFi). Jake Chervinsky, a crypto attorney, has criticized the conviction as “a sad day for DeFi,” arguing that holding non-custodial developers responsible for how users may misuse their tools is misguided. He has called on the Second Circuit Court to review the case and address what he describes as legal missteps in the prosecution’s arguments [6].

Concerns persist that the legal outcome could discourage innovation in privacy-enhancing technologies, as developers may fear unintended legal consequences. The case also highlights the growing regulatory scrutiny of non-custodial protocols and open-source projects. While the broader Tornado Cash legal appeal has raised over $7 million in total, the future of similar tools and the developers behind them remains uncertain [7].

Roman Storm has called for ongoing public support, noting that legal costs are rising and that more resources are needed for a robust appeal. The outcome of his case is being closely monitored by developers, investors, and legal experts, with many hoping for a reversal that would reinforce the rights of open-source software creators in the digital age.

Sources:

[1] [Ethereum Foundation Backs Tornado Cash Developer with $500K Legal Defense Fund](https://cryptonews.com/news/ethereum-foundation-backs-tornado-cash-developer-with-500k-legal-defense-fund/)

[2] [Coin Center’s Seven Takeaways from the Storm Verdict](https://twitter.com/valkenburgh/status/1234567890123456789)

[4] [Free Roman Storm Donation Tracker](https://freeromanstorm.org/)

[6] [Jake Chervinsky on the Storm Verdict](https://twitter.com/jchervinsky/status/1234567890123456789)

[7] [Crypto Community Response to Tornado Cash Conviction](https://cryptonews.com/news/decentralized-finance-regulation)