Ethereum Foundation’s Support for Tornado Cash Co-Founder: A Deep Dive
The Ethereum Foundation (EF) has announced its commitment to donate up to $500,000 to aid Roman Storm, the co-founder of Tornado Cash, in his ongoing legal battle. This pledge comes in the wake of a court verdict where Storm was found guilty on one of three charges levied against him.
Ethereum Foundation Pledges Financial Assistance for Legal Defense
In a recent development, the Free Pertsev and Storm fundraising initiative disclosed that the Ethereum Foundation is ready to match donations up to half a million dollars. These funds are designated to bolster the legal defense of Tornado Cash’s co-founder as he navigates the complexities of the judicial system following the recent trial decision.
Advertisement Banner
In a social media announcement, the fundraising team emphasized the critical need for these resources, asserting, “We will require these funds and more to persist in the legal battle for Roman at trial and on appeal. The outcome of these proceedings is poised to set a significant precedent for developers globally.”
The issue traces back to August 2022 when the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash. The platform was accused of inadequate controls that allegedly facilitated money laundering activities, including a notable $455 million linked to North Korea’s notorious Lazarus Group.
Following the sanctions, Roman Storm was apprehended and faced charges of conspiracy to commit money laundering, breach of sanctions, and running an unlicensed money transmitting business. The trial, which began on July 14 after multiple delays, culminated on August 6 with a jury unable to reach a consensus on two charges. However, Storm was convicted of conspiracy to operate an unlicensed money transmitting business, a verdict carrying a potential five-year sentence.
In reaction to the verdict, Storm expressed determination to challenge the decision, stating, “This is a significant victory. The ‘1960’ charge is unfounded, and we are prepared to contest it vigorously. As President Trump once said, ‘fight, fight, fight,’ and that’s precisely what we intend to do.”
The Free Pertsev and Storm team further elaborated, “Roman faces up to five years of incarceration if the appeal fails, and potentially longer if the government opts to retry the remaining charges.”
Future Steps in Storm’s Legal Journey
In a discussion with Sam Enzer, a former prosecutor, hosted by Laura Shin on the Unchained podcast, insights were shared on the mixed verdict and the next phases for Storm. Enzer explained the procedural steps preceding an appeal, noting, “Roman has the option to request a new trial or a judgment of acquittal. Subsequently, Judge Failla will deliver a ruling.”
Enzer noted that if the judge upholds the conviction on the unlicensed money transmitting business charge, sentencing could proceed, and the government might opt to retry Storm on the unresolved charges. Conversely, the judge might find the conviction inappropriate, potentially leading to an acquittal on the hung counts.
Enzer concluded, “If either of these ‘extreme’ scenarios occurs, the case is likely to advance to the appellate stage. The party dissatisfied with the outcome will initiate the appeal—whether it’s the government or Roman himself—based on the final district court decision.”
As of the latest update, Ethereum (ETH) is trading at $3,953, according to TradingView charts.
Our Editorial Commitment
At Bitcoinist, we prioritize delivering content that is rigorously researched, accurate, and unbiased. Our editorial process involves adherence to strict sourcing standards, with each piece undergoing thorough review by our team of leading technology experts and experienced editors. This ensures that our readers receive trustworthy and valuable content.
