Arbitrum withdraws a proposal to donate an amount of cryptocurrency to Tornado Cash developers Roman Storm and Alexey Pertsev. The proposal aimed to donate 200,000 to 600,000 ARB tokens, worth up to $1.2 million, to developers’ legal defense fund.
Token holders withdrew the proposal because they were worried it might lead to legal problems. Tornado Cash, a platform aimed at hiding Ethereum transactions, is under investigation for allegedly laundering illegal money, including funds associated with the Lazarus Group.
Moreover, the United States has sanctioned Tornado Cash, effectively warning residents from using the service, leading to some advocating for the developers’ right to create privacy-preserving software.
The now-deleted proposal aimed to contribute funds to the _WeWantJusticeDAO_ crowd-funding campaign, which coordinates the coverage of Storm and Pertsev’s legal expenses, estimated to be around $100,000 per month. The donated tokens would be held on Juicebox, a crypto-focused fundraising platform.
As the legal battle surrounding Tornado Cash continues, the withdrawal of the proposal highlights the complexities and potential risks associated with supporting entities or individuals subject to legal action, particularly in the rapidly evolving realm of cryptocurrency and decentralized finance.
