Ethereum Foundation Pledges $1M for Tornado Cash Co-Founder

Roman Storm, co-founder of Tornado Cash, receives backing from the Ethereum Foundation, pledging $1 million for his legal defense after being found guilty in Manhattan for operating an unlicensed money transmitting business.

Ethereum Foundation’s pledge underscores its defense of privacy rights and open-source development, significantly affecting public opinion in DeFi.

The Ethereum Foundation has pledged up to $1 million in support of Roman Storm’s legal defense, following his partial guilty verdict.

This commitment includes matching community donations, highlighting the foundation’s advocacy for privacy rights and open-source software development. Roman Storm, co-founder of Tornado Cash, has been an advocate for privacy and argues against developers being criminally liable for code use.

“Privacy is normal, and writing code is not a crime,” – Hsiao-Wei Wang, Co-Executive Director, Ethereum Foundation.

The Ethereum Foundation, a key player in the ecosystem, emphasizes privacy rights in its support of Storm.

The news impacted the crypto market, with Tornado Cash’s TORN governance token dropping 17%. Furthermore, ETH’s price remained stable but the association with Tornado Cash stirred privacy protocol debates. The potential precedents from Storm’s case could reshape software liability in the DeFi sector. Historical sanctions and recent legal actions have affected privacy protocols such as Tornado Cash, emphasizing regulatory impact.

Political and business implications are profound, considering the Ethereum Foundation’s stance on privacy. The developments may prompt increased scrutiny on developers of privacy-supporting protocols.

Potential outcomes include heightened regulatory focus on privacy tools. Storm’s case may influence future protocol developments and regulatory frameworks. Historical trends suggest ongoing challenges for privacy protocol acceptance.