Ethereum Foundation Adds $500,000 Donation to Roman Storm Defense Fund, Total Reaches $1.25 Million.
David Hoffman of Bankless calls for a response from Solana.
(Background: The founder of Tornado Cash was convicted of “unlicensed money transmission”; is this punishment fair?)
(Context: The U.S. Department of Justice ruled that Roman Storm, co-founder of Tornado Cash, committed “unlicensed money transmission,” leading to collective support from the crypto community.)
Wang Xiaowei, Executive Director of the Ethereum Foundation, announced on the X platform that an additional $500,000 has been donated to the legal defense fund of Tornado Cash co-founder Roman Storm, bringing the Ethereum Foundation’s total support for this case to at least $1.25 million.
Ethereum Foundation Increases Support
Roman Storm has been convicted by a Manhattan jury of “conspiracy to operate an unlicensed money transmitting business” for allegedly assisting in the laundering of over $1 billion in illegal funds through Tornado Cash, facing a maximum sentence of five years.
The Ethereum Foundation’s latest contribution continues the commitment of a $750,000 matching donation made last year, aimed at ensuring that Storm can hire expert witnesses and maintain resources for his appeal. Wang Xiaowei stated:
We stand with the community to ensure that open-source developers have a fair chance at defense.
This action by the foundation is seen as a substantial endorsement of the rights of open-source privacy tools and developers. According to Cointelegraph, donations from the crypto community have also flooded in, raising millions for Storm.
Bankless: Is Solana Going to Respond?
David Hoffman, co-founder of Bankless, replied on X:
We are pleased to see the Solana community standing up against the U.S. Department of Justice to protect smart contract developers under the “Money Transmission Act” for the benefit of all crypto pursuits.
This implies criticism of the Solana Foundation for not initiating donations or support, and for not directly using foundation funds to contribute to Storm.
Judgment Still Not Finalized
The jury was divided on the more serious charges of “conspiracy to launder money” and “conspiracy to violate financial sanctions,” resulting in a hung jury, with prosecutors retaining the right to retry the case. The focus of the case revolves around:
To what extent should developers be held accountable when open-source code is misused? Prosecutors argue that Storm was aware and chose not to modify the code to prevent illegal activity, while Storm claims he merely provided a tool and was not involved in the flow of funds.
For every user involved in decentralized finance (DeFi), the Storm case serves as a reminder that regulators need to draw clearer lines between encouraging blockchain innovation and safeguarding financial order. The subsequent sentencing and whether the hung charges will be retried will impact global DeFi and privacy technology investments, as well as the prospects for developers.
