Ethereum Foundation Provides $500,000 Donation for Roman Storm Legal Defense
The Ethereum Foundation announced a substantial donation of $500,000 towards the legal defense of Tornado Cash co-founder Roman Storm. Storm faces serious charges related to alleged conspiracy to operate a crypto mixing service without an applicable license.
Announced Friday on X, the Foundation’s contribution is set to match every dollar donated by the cryptocurrency community against Storm, with a potential match up to an additional $750,000.
Upcoming Trial Date and Charges
The timing of Friday’s announcement coincides with a trial likely to commence on July 14th before a New York court. Storm is the subject of charges including money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate US sanctions.
Storm’s arrest followed the protocol’s inclusion in the Office of Foreign Assets Control’s (OFAC) list of sanctioned entities.
“Privacy is normal, and writing code is not a crime,” stated a message attributed to the Ethereum Foundation via X.
Navigating the Regulatory Landscape
The legal case against Storm emerges as US authorities are adjusting their policies concerning digital asset regulation and enforcement actions against alleged crimes within the crypto sphere.
Earlier in December, prior to the Foundation’s donation announcement, Storm’s defense counsel requested the case’s dismissal, citing a judge’s ruling that OFAC improperly exceeded its authority by sanctioning Tornado Cash’s smart contracts. The trial date remains anticipated July 14th.
In a social media post, Storm lamented the litigation’s progress, stating: “In 31 days, I face trial. The DOJ wants to bury DeFi, saying I should’ve controlled it, added KYC, never built it. SDNY is trying to crush me, blocking every expert witness. If I lose, DeFi dies with me.”
Weighing the Implications
Roman Semenov, the other co-developer of Tornado Cash indicted alongside Storm, remains at large, with reports suggesting he may be in Russia. Three individuals were initially charged in connection with Tornado Cash.
Alexey Pertsev, the third person accused, was arrested in the Netherlands around the time sanctions were imposed, leading to a May 2024 conviction for money laundering and a sentence exceeding five years imprisonment. The Ethereum Foundation has committed $1.25 million to Pertsev’s funding similarly.
The fates of Storm and the developers raise critical questions about the long-term future of privacy-focused cryptocurrencies and decentralized finance (DeFi) protocols operating internationally.
Crypto Community Solidarity
Wide support for Storm and his co-defendants has been mobilized by key entities within the digital asset space.
Amicus curiae – or “friend of the court” – briefs submitted by advocates for Storm include those filed by the Coin Center, DeFi Education Fund, and the Blockchain Association. These documents seek input into the potential societal impacts of any conviction on the burgeoning DeFi space. Furthermore, Ethereum co-founder Vitalik Buterin and Paradigm’s Matt Huang have already contributed funds towards the defense of Storm and Tornado Cash’s developers.
