Ethereum News Today: Ethereum Foundation Pledges $500K to Tornado Cash Founder's Legal Defense

The Ethereum Foundation has announced its commitment to matching up to $500,000 in community donations for the legal defense of Roman Storm, co-founder of the privacy-focused DeFi protocol Tornado Cash [1]. The pledge, revealed via a public statement on X by the Ethereum Foundation leadership, represents a significant institutional backing for developers facing legal challenges in the privacy technology space [2].

Storm was recently convicted on one of three charges related to U.S. Treasury sanctions imposed on Tornado Cash in 2022, which accused the protocol of enabling the laundering of billions of dollars in illicit funds, including those tied to North Korea's Lazarus Group [3]. Prosecutors allege that Storm and others profited from the system, while his defense has argued that the tool was designed to provide privacy to all users, regardless of their intent [5]. The jury deadlocked on the remaining charges, setting the stage for a potential retrial that could result in significant prison time for Storm [6].

This case has reignited broader discussions on the legal status of open-source privacy tools and the rights of developers in the crypto space. Legal experts have raised concerns that the charges and arguments used in Storm’s trial could set a precedent, potentially exposing developers of other privacy-focused protocols to similar legal risks [7]. Jake Chervinsky, a crypto lawyer, has criticized the verdict as a “sad day for DeFi,” arguing that the relevant statute does not apply to non-custodial protocols [8].

The Ethereum Foundation’s pledge is part of a larger pattern of legal challenges affecting privacy-focused crypto tools. Just weeks earlier, the founders of Samourai Wallet, another privacy-oriented service, pleaded guilty to similar charges [9]. These events highlight the growing legal exposure for developers of decentralized technologies and the critical need for community and institutional support.

Prominent Ethereum figures, including co-founder Vitalik Buterin and Foundation member Matt Huang, have already contributed to the defense fund, signaling strong support from within the ecosystem [3]. The Ethereum Foundation has emphasized that privacy is a fundamental right and that writing code should not be criminalized [1]. The move not only aids an individual but also reinforces a broader institutional stance in defense of decentralized development and user privacy.

Amid these developments, advocacy groups are also stepping forward by filing amicus briefs in support of privacy rights and open-source development. While the Ethereum market has not yet shown visible liquidity shifts in response to these events, the long-term implications for privacy-focused technologies and regulatory approaches remain uncertain [3].

Sources:

[1] Yahoo, https://finance.yahoo.com/news/ethereum-foundation-pledges-match-500k-062709411.html

[2] Decrypt, https://decrypt.co/334190/ethereum-foundation-pledges-match-500k-roman-storms-legal-defense

[3] Coinspeaker, https://www.coinspeaker.com/news/crypto/ethereum-news/

[5] AInvest, https://www.ainvest.com/news/ethereum-news-today-ethereum-foundation-pledges-500k-match-tornado-cash-founder-legal-defense-2508/

[6] Traders, https://tradersunion.com/news/cryptocurrency-news/show/421755-tornado-cash-developer/

[7] Yahoo, https://finance.yahoo.com/news/block-inc-xyz-q2-2025-073933769.html

[8] MEXC, https://www.mexc.com/ru-RU/news?page=673