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Roman Storm, co-founder of the privacy-focused cryptocurrency mixer Tornado Cash, continues to receive significant support from the crypto community. The Ethereum Foundation has pledged $500,000 to aid in his legal defense as he prepares for a critical court hearing.

Ethereum Foundation’s Financial Support

The Ethereum Foundation’s recent donation aims to bolster Storm’s defense ahead of his July 14 trial in New York. He faces charges of operating an unlicensed money-transmitting business, money laundering, and violating U.S. sanctions. These charges carry severe penalties, with Storm potentially facing up to 45 years in prison if convicted.

In a statement accompanying the donation, the foundation emphasized its stance, saying,

“Privacy is normal, and writing code is not a crime.”

Furthermore, the foundation committed to matching community donations up to an additional $750,000, further amplifying their support for Storm’s legal battle.

Community and Industry Backing

Storm publicly expressed his gratitude for the Ethereum Foundation’s donation, describing it as a significant act of solidarity during a challenging time. This support underscores the broader industry’s concerns about the implications of his case for privacy and innovation in the cryptocurrency space.

The donation follows earlier contributions to Tornado Cash’s other co-founder, Alexey Pertsev. In February, Pertsev received $1 million in donations for his legal defense. Pertsev was convicted in May 2024 on similar allegations and sentenced to 64 months in prison. Although he was recently released under house arrest with electronic monitoring, his case remains a pivotal example of the challenges facing privacy-focused blockchain projects.

Vitalik Buterin and Other Industry Leaders Join the Cause

Ethereum co-founder Vitalik Buterin has also shown support, alongside other prominent figures like Paradigm CEO Matt Huang. Contributions from these leaders have significantly bolstered the ‘Free Pertsev & Storm’ legal aid campaign, which aims to provide resources for their defense while raising awareness about the broader implications of these cases.

Legal Challenges and Allegations

Prosecutors allege that Storm and his co-founders allowed Tornado Cash to facilitate transactions for sanctioned entities, including North Korea’s Lazarus Group. These allegations claim that the platform was knowingly used for illicit activities, leading to its founders’ legal troubles.

Efforts by Storm’s legal team to dismiss the charges have so far been unsuccessful. Meanwhile, Roman Semenov, the third co-founder named in the Department of Justice indictment, remains at large and has evaded authorities since the initial crackdown on Tornado Cash.

Implications for Privacy-Focused Technologies

The cases against Tornado Cash’s founders highlight the ongoing tension between privacy-focused blockchain technologies and regulatory enforcement. As legal proceedings continue, the outcomes could shape how privacy tools in the crypto industry are developed and regulated in the future.

The Ethereum Foundation’s financial backing, along with growing community support, signals the importance of defending privacy rights and innovation within the cryptocurrency space. The coming months will be crucial in determining the impact of these cases on the broader industry.

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