DAO Guardian Backs Tornado Cash Developers: Funding Flow for Legal Defense Unveiled!

An activist group has initiated a legal defense fund on January 22 for Tornado Cash developers Alexey Pertsev and Roman Storm. The fund aims to raise financial support and is endorsed by Roman Storm, who expressed both fear and hope for community support in this defining year. Ameen Soleimani, associated with various Ethereum projects, announced the accompanying DAO, emphasizing the significance of their trials for ETH developers and users, particularly those involved in privacy tools.

Community-Driven Fundraising Efforts

The fund, organized by the group Free Pertsev & Storm, will run from January 22 to February 22. The defendants' legal fees are estimated between $90,000 and $100,000 per month, with crucial months ahead to shape their defense strategy. Donations are accepted through JuiceBoxDAO, GoFundMe, and WeWantJusticeDAO.org. As of January 22, the JuiceBoxDAO fundraiser attracted 23 ETH ($53,300) through 78 donations, while the GoFundMe campaign raised $14,745.

U.S. Action Against Tornado Cash

The U.S. initially took action against Tornado Cash in August 2022, blacklisting on-chain addresses linked to the service. A year later, the U.S. Department of Justice pursued charges against developers Roman Storm and Roman Semenov, with Storm facing allegations of conspiracy related to money laundering, sanctions violations, and operating an unlicensed money-transmitting business. Alexey Pertsev, arrested in the Netherlands in 2022, faces similar charges and has been designated by the Treasury for his role in Tornado Cash.

Debates Over Coin Mixers

U.S. authorities argue that coin mixers like Tornado Cash are used in money laundering and by cybercrime groups, including North Korea's Lazarus Group. However, the crypto community contends that coin mixers have legitimate privacy applications. The DeFi Education Fund has submitted a comment opposing a federal proposal to treat coin mixers as a special money laundering concern.

Community Rallies Behind Tornado Cash Developers

The emergence of a legal defense DAO and fundraising initiatives signals a community-driven effort to support Tornado Cash developers facing legal challenges in the U.S. The trials are deemed critical for Ethereum developers and users involved in privacy tools. As debates over the legitimacy of coin mixers persist, the crypto community seeks to influence regulatory decisions concerning their classification as a money laundering concern.