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Ethereum Foundation Donates $500K For Tornado Cash Co-Founder

Written By Shruti Lakhlani Shruti Lakhlani
Fact Checked by Gopal Solanky Gopal Solanky
Published 2025-08-09·Updated 11 months ago
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Ethereum Foundation Donates $500K For Tornado Cash Co-Founder

The Ethereum Foundation has committed to matching up to $500,000 in community donations to fund the legal defense of Roman Storm, co-founder of Tornado Cash, a cryptocurrency mixing protocol. The move by the foundation shows support for privacy and open-source innovations. 

An X handle, run by Storm’s legal team for legal aid, announced, “The @ethereumfndn has generously offered to match up to $500k in further donations to support Roman’s legal aid.” 

The @ethereumfndn has generously offered to match up to $500k in further donations to support Roman's legal aid.

Roman risks up to 5 years of jail time if he doesn't win the appeal, and potentially decades if the government decides to retry Counts 1 & 3.

— Free Pertsev & Storm (@FreeAlexeyRoman) August 7, 2025

Storm was convicted on August 7, 2025, in a Manhattan federal court on one count of conspiring to operate an unlicensed money transmitter, facing up to five years in prison if his appeal fails. 

In addition, the jury deadlocked on two more severe charges—conspiracy to commit money laundering and violate U.S. sanctions—leaving open the possibility of a retrial. If the government pursues these charges, Storm could face decades in prison, a prospect that has alarmed advocates of decentralized finance (DeFi) and privacy-focused technologies.

Charges Over Developing Tornado Cash

Tornado Cash is an Ethereum-based cryptocurrency project that permits users of its service to anonymize transactions; it has attracted the attention of U.S. officials, who claim it was used to launder funds, among other illegal transactions, by entities such as the Lazarus Group in North Korea. 

The defense of Storm states that, since the protocol is open-source, it functions independently, and bringing developers to trial over its use is a very risky precedent in the tech and cryptocurrency communities. The fact that writing code is not a crime stands out, reinforced by Vitalik Buterin, one of the co-founders, and promoted by the Ethereum Foundation.

Fundraise to Support Roman’s Trial

This funding follows the Foundation’s earlier contributions, including a $500,000 direct donation and a $750,000 matching pledge in June 2025. The latest $500,000 match is intended to assist Storm’s team in raising $1.5 million for his appeal, given the rapidly increasing legal costs. The community-driven effort, led by Free Pertsev & Storm, calls for global donations to amplify the defense fund through the Foundation’s matching program.

Storm’s case is a tipping point in the crypto sphere and brings to the fore questions of developer liability, the rights to privacy, and the uncertain future of DeFi. His popularity has the potential to change how regulators approach the regulation of decentralized technologies, following the U.S. Treasury’s removal of sanctions against Tornado Cash in March 2025. 

The whole crypto community is invited to join the battle since this case has the potential of establishing the premises of innovation and liberty in the blockchain world.

Also Read: Ethereum’s Fusaka Upgrade Faces Delay Due To Coordination Issues

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:Ethereum (ETH)Tornado Cash
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Shruti Lakhlani- Crypto Journalist at The Crypto Times
By Shruti Lakhlani
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Shruti Lakhlani is a Crypto Journalist with over 5 years of experience in media and digital content. She specializes in covering the latest developments in the cryptocurrency industry, including major updates in the U.S. markets and global regulatory policies.
Gopal Solanky, Senior Reporter for Markets and Protocols at The Crypto Times
By Gopal Solanky Sr. Crypto Journalist
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Gopal Solanky is a Senior Reporter for Markets & Protocols at The Crypto Times, based in Ahmedabad. He covers institutional crypto adoption, Bitcoin treasury strategies, DeFi markets, protocol ecosystems, Ethereum network activity, Hyperliquid, on-chain trends, and broader digital asset market movements. Gopal has been active in the crypto ecosystem for more than six years. Before joining The Crypto Times full-time in 2023, he worked as a freelance crypto content writer, developing a strong understanding of blockchain infrastructure, DeFi protocols, market cycles, token mechanics, and peer-to-peer systems. His reporting focuses on explaining how protocols work, why market movements happen, and how institutional and on-chain activity affects crypto investors and builders. At The Crypto Times, Gopal also hosts on-the-record interviews with regional Web3 founders, protocol teams, and ecosystem leaders. His work has been cited by external publications, including Vulture.com, in coverage of major crypto stories such as the Hawk Tuah memecoin controversy. His reporting has also contributed to The Crypto Times’ coverage of major industry events, including FTX-related developments, institutional crypto adoption, and emerging protocol narratives. Gopal holds a Bachelor’s degree in Computer Applications, giving him a technical foundation for analyzing blockchain systems, crypto infrastructure, and market data.

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