The Ethereum Foundation has allocated $1.25 million to support Tornado Cash developer Alexey Pertsev, who faces legal challenges over money laundering accusations.
Support from Ethereum Foundation
The Ethereum Foundation announced a $1.25 million donation to the legal defense of Alexey Pertsev, the developer of Tornado Cash. Pertsev, who had been in custody since August 2022, was released under house arrest in February 2023 and is currently preparing his appeal.
Tornado Cash's Legal Challenges
In May 2024, the 's-Hertogenbosch Court of Appeal found Pertsev guilty of money laundering and sentenced him to 64 months in prison. The charges were based on the U.S. Department of the Treasury’s sanctions on Tornado Cash for laundering over $7 billion of illicit funds. However, a U.S. court later declared that the sanctions against Tornado Cash's immutable smart contracts were an overstep.
Resonance in the Crypto Community
Pertsev's case has drawn criticism within the crypto community. Ethereum co-founder Vitalik Buterin expressed regret over the situation, noting the importance of defending the right to develop software. Meanwhile, another Tornado Cash co-founder, Roman Storm, is also facing charges of facilitating money laundering, with his case receiving support from several investment firms, including Paradigm.
The situation around Tornado Cash and its developers continues to unfold and has sparked significant debate, raising questions about software regulation and privacy protection in the crypto sphere.
