- The Ethereum Foundation gave $1.25M to support Tornado Cash developer Alexey’s appeal.
- A Dutch court gave Pertsev 64 months for laundering through Tornado Cash in May 2024.
- Vitalik and crypto groups contributed funds as the case concerns developer liability.
The Ethereum Foundation donated $1.25 million to support Tornado Cash developer Alexey Pertsev’s legal defense as he appeals his money laundering conviction in the Netherlands. In an X post on February 26, the foundation said, “Privacy is normal, and writing code is not a crime.” Pertsev, who was released from custody on February 7 after being detained since August 2022, is now under house arrest as his appeal progresses.
In May 2024, the Hertogenbosch Court of Appeal found Pertsev guilty of laundering money through Tornado Cash and sentenced him to 64 months. Pertsev has maintained that neither he nor his associates controlled the platform’s funds or protocol. Previously, a Dutch court extended his detention in November 2024, a Dutch court extended his detention, but the decision was reversed in early February.
Tornado Cash was sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in 2022. OFAC claimed that over $7B had been laundered via the platform since 2019, including $455 million, as the case was related to the Lazarus Group. However, a U.S. court ruled that the Treasury overreached when sanctioning immutable smart contracts tied to Tornado Cash.
Storm And Community Mobilize For Legal Defense Funding
Pertsev’s case has gained attention, drawing contributions from the crypto community. In December 2024, Ethereum co-founder Vitalik Buterin donated 50 ETH, valued at approximately $170,000, to the Free Pertsev and Storm fund through Juicebox. Storm, another developer facing the exact charges, stated that Buterin’s donation accounted for nearly 25% of the $650,000 raised via JusticeDAO.
Storm faces charges of avoiding sanctions and operating an unlicensed money transfer service for developing open-source software that enabled private crypto transactions. If convicted, he could face up to 45 years in prison.
In addition to personal contributions, organizations like the Blockchain Association, Coin Center, and the DeFi Education Fund have submitted amicus briefs in support of Storm. Paradigm, alongside EF, has also provided financial aid. Politician Vivek Ramaswamy voiced concerns, urging authorities to focus on criminal activity rather than targeting open-source code developers.
Related: Ethereum Foundation Moves 45,000 ETH into DeFi Platforms
Legal Battle Sparks Industry-Wide Debate
This legal battle has intensified debates within the tech community over developer responsibility. Many people argue that coders should not be held accountable for how third parties use their creations. On the other hand, the case has instilled fear among some developers, prompting hesitancy in releasing new software. One U.S.-based developer even filed a lawsuit against the Department of Justice, citing concerns over potential misuse of legal authority.
The Ethereum Foundation and Paradigm’s financial support signals widespread opposition to criminalizing code authorship. With growing industry concerns, the lawsuit raises a pivotal question: Should software creators bear responsibility for users’ actions?
As the appeal unfolds, its outcome may set a critical precedent affecting privacy, open-source software, and regulatory boundaries within the cryptocurrency sector.
