Ethereum Foundation puts $500,000 behind Tornado Cash defence: ‘Code isn’t crime’

The legal fight over Tornado Cash has become a litmus test for crypto’s right to build.

Roman Storm, one of the protocol’s original developers, is facing trial next month on charges of conspiracy to launder money and violate US sanctions.

These are charges that many in the industry argue criminalise open-source software. The case is a flashpoint in the debate over privacy, decentralisation, and the boundaries of developer liability.

“The DOJ wants to bury DeFi,” Storm wrote on X, “saying I should’ve controlled it, added KYC, never built it. If I lose, DeFi dies with me.”

Now, the Ethereum Foundation is stepping in. On Friday, it announced a $500,000 donation to Storm’s legal defence and pledged to match up to $750,000 in additional community contributions.

That’s enough, Storm’s team says, to fully fund the remainder of his legal costs.

The Foundation signed off its tweet stating: “Privacy is normal, and writing code is not a crime.”

Bumps in the road

The funding comes at a critical moment.

Storm’s defence team has accused federal prosecutors of withholding key communications with the Financial Crimes Enforcement Network that could undermine the case.

Those communications, revealed in a related lawsuit against the developers of Samourai Wallet, suggest that noncustodial crypto mixers like Tornado Cash may not legally qualify as money services businesses, challenging the foundation of the government’s argument.

Tensions have also escalated around expert testimony.

Last week, prosecutors filed a motion seeking to exclude Storm’s proposed witnesses, calling their arguments a “Trojan horse” that could confuse the jury.

Storm’s lawyers have pushed back, saying they need more time to respond and warning that the government’s motion would silence critical context around DeFi, privacy, and blockchain infrastructure.

Storm’s trial is set to begin on July 14 in the Southern District of New York.

Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.