**Ethereum Foundation Steps Up with $1.25 Million Donation for Tornado Cash Developer’s Legal Defense**
The Ethereum Foundation has made a generous $1.25 million donation to aid the legal defense of Tornado Cash developer Alexey Pertsev. This announcement comes on the heels of Pertsev’s release from jail as he prepares for his appeal. Pertsev, a key figure behind the privacy-centric protocol Tornado Cash, was sentenced to 64 months in a Dutch prison on money laundering charges. In its statement regarding the financial support for Pertsev’s defense, the Ethereum Foundation reiterated its commitment to digital privacy and the rights of developers, asserting, “Writing code is not a crime, and privacy is a fundamental right.” Recall that in December 2024, Ethereum co-founder Vitalik Buterin also contributed 50 ETH—worth around $170,000 at that time—to help cover the legal costs for both Pertsev and his fellow Tornado Cash developer, Roman Storm.
**Ethereum Foundation Pledges Support**
In 2024, Pertsev was convicted after authorities claimed he did not take adequate measures to prevent illicit transactions on Tornado Cash. The indictment accused him of facilitating money laundering by enabling anonymous transactions on the blockchain. Dutch prosecutors contended that he should have foreseen the potential misuse of the protocol. This case has sparked significant concerns regarding the legal treatment of software developers, as prosecutors have sought to impose criminal liability on developers based on how third parties utilize their software. The Ethereum Foundation’s contribution aligns with a similar commitment from Paradigm, whose co-founder Matt Huang also pledged $1.25 million to support Roman Storm in his legal challenges.
**Concerns Over Software Development Criminalization**
Roman Storm is facing serious charges related to operating an unlicensed money-transmitting business and conspiracy to commit money laundering. He has expressed concerns about the broader implications for developers, warning that this case could set a troubling precedent that criminalizes software development and affects the entire tech industry. With the possibility of facing up to 45 years in prison, Storm highlighted that many developers are already hesitant to release new software due to fears of legal repercussions. A recent lawsuit against the U.S. Department of Justice (DOJ) has brought attention to the chilling effect that Storm’s prosecution has had, seeking relief for developers who are reluctant to embark on new projects due to potential legal risks.
**Court Ruling Challenges Treasury’s Authority**
In a noteworthy development, a federal court ruling in November found that the U.S. Treasury exceeded its authority by sanctioning Tornado Cash. The court determined that Tornado Cash’s smart contracts do not qualify as “property” under federal law, making them ineligible for sanctions. The ruling emphasized that the open-source and immutable nature of these contracts means they cannot be owned or controlled.
