We’re excited to announce that the Ethereum Foundation is supporting Roman Storm, a developer associated with the controversial crypto mixer Tornado Cash. This backing follows his conviction on multiple counts of money laundering. This decision follows the recent sentencing of another Tornado Cash coder, Alexey Pertsev. It does show how many prominent legal battles are still raging over the platform. These lawsuits have spurred a broader conversation surrounding privacy, regulation, and developers’ liability in the crypto realm.
Legal Actions Against Tornado Cash Developers
Alexey Pertsev was arrested in Amsterdam on August 10, 2022, by Dutch authorities and charged with conspiring to launder over $1 billion in cryptocurrency through Tornado Cash. As it currently stands, Pertsev will be released from prison on February 7, 2025, albeit under electronic monitoring.
Roman Storm, the other prominent figure behind Tornado Cash, was arrested on August 23, 2023 and charged with similar crimes. Storm is accused of conspiring to launder more than $1 billion. Authorities say this figure accounts for the funds shifted by North Korea’s Lazarus Group. On May 14, Storm was sentenced to 64 months in prison for aiding the laundering of about $1.2 billion dollars. He has since been extradited back to Washington state, where he now sits on $2 million bail awaiting trial.
The U.S. Treasury Department recently sanctioned Tornado Cash. Consequently, the Treasury’s Office of Foreign Assets Control (OFAC) removed it from its specially designated nationals list on smart contract addresses on March 21. These actions are indicative of the government’s position toward crypto mixers and their use as tools for facilitating illicit activities.
Ethereum Foundation's Support
The Ethereum Foundation has intervened to support Steam’s legal defense, donating $500,000 on June 12 to his defense fund. The foundation promised to match $750,000 of the public’s contributions on top of that. This move, coupled with the strong advocacy already expressed, indicates a serious commitment to Storm’s case. This financial support is intended to strengthen Storm’s defense as he faces this difficult and complicated situation.
Paradigm, a crypto-focused investment firm, has funded Storm’s defense, giving Storm a $1.25 million grant earlier this year. Despite the legal challenges, a federal judge has upheld the jury date for Storm’s case of July 14, 2025. This decision is a clear indication that the best legal fight is far from over.
Industry Advocacy and Future Implications
Coin Center and the DeFi Education Fund y’all have been awesome supporters of Alexey Pertsev. To support his appeal, they filed an amicus brief in support. This action highlights the broader problems plaguing the cryptocurrency community. More importantly, it asks fundamental questions about the impact of such cases on software developers and privacy-enhancing technologies generally.
Either of these cases would be very important precedent setting cases. Most importantly, they are making the case on which developers of decentralized technologies will be accountable for what actions users take on their platforms. The debate continues to evolve as the industry grapples with balancing innovation, privacy, and regulatory compliance in the digital age.
