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Ethereum Foundation Funds Tornado Cash Developer Defense in Regulatory Clash

The Ethereum Foundation has pledged $500,000 for the legal defense of Tornado Cash developer Roman Storm while launching a $750,000 community matching initiative. This support arrives as Storm faces criminal charges related to his role in developing the cryptocurrency privacy tool, highlighting escalating tensions between regulatory enforcement and cryptographic privacy rights.

Storm is charged with conspiracy to operate an unlicensed money transmitter and violations of U.S. sanctions. His trial proceedings are scheduled to begin July 14 in New York federal court, constituting one of the highest-profile criminal cases targeting a crypto protocol developer.

Industry advocacy groups including Coin Center and the Blockchain Association have filed amicus briefs supporting Storm’s defense. Their arguments contend that prosecuting developers for creating privacy-focused software establishes a dangerous precedent threatening blockchain innovation and open-source development principles.

The legal battle follows a prior ruling determining the Office of Foreign Assets Control overstepped by sanctioning Tornado Cash’s immutable smart contracts. Prosecutors nevertheless proceed with charges against Storm personally, arguing his management of the protocol violated financial regulations.

Analysts broadly agree the case’s outcome will significantly influence future regulatory approaches toward decentralized finance platforms and privacy-enhancing technologies across the cryptocurrency sector.

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