Ethereum Foundation Donates $1.25 Million To Tornado Cash Developer’s Legal Defense

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Breaking: Ethereum Foundation Throws $1.25 Million at Legal Woes! 💰💥

In a move that could only be described as “generous” or perhaps “slightly bonkers,” the Ethereum Foundation (EF) has decided to part with a cool $1.25 million to assist Tornado Cash developer Alexey Pertsev in his ongoing legal escapades. This donation comes hot on the heels of Pertsev’s supervised release, which is a fancy way of saying he’s out of the slammer but still has to wear an electronic ankle bracelet that probably doesn’t match his shoes.

On a particularly thrilling Wednesday, the Ethereum Foundation took to the digital ether to announce their donation, proclaiming that “privacy is normal, and writing code is not a crime.” Well, that’s a relief! I was worried I’d have to start writing my grocery list in invisible ink.

Now, let’s rewind to August 2022, when the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) decided that Tornado Cash was a bit too good at keeping secrets. They slapped sanctions on the Ethereum-based crypto mixer for not having enough “effective controls” to stop the bad guys from laundering money. Apparently, they were too busy mixing cocktails instead of coins.

According to the Treasury, this decentralized protocol was used to launder a staggering $7 billion since 2019. That’s billion with a “B,” which is a lot of zeroes! Among the culprits was the infamous Lazarus Group, a North Korean hacking collective that seems to have a knack for turning digital assets into thin air.

After a brief vacation in a Dutch jail, Pertsev was charged with money laundering for allegedly helping to facilitate the laundering of $1.2 billion. That’s a lot of laundry! In May 2024, he was found guilty and sentenced to five years in prison, but he’s now out on supervised release, which is like being grounded but with more Wi-Fi.

His legal team, in a fit of optimism, has submitted an appeal against the court’s ruling, which led to his current status of “not quite free but definitely not in prison.” Pertsev himself took to X (formerly Twitter) to announce his release, stating that while it wasn’t “real freedom,” it was “better than prison.” Well, that’s a glowing endorsement of the outside world!

The Battle for Privacy Tools Rages On

In a heartfelt moment, Pertsev expressed his gratitude to the Ethereum Foundation for their generous donation, which allows him to focus on preparing his appeal instead of worrying about how to pay for his legal team. It’s nice to know that even in the world of crypto, kindness still exists—like a unicorn in a field of blockchain.

Vitalik Buterin, Ethereum’s founder and part-time philosopher, chimed in with his support, echoing the Foundation’s sentiments. He’s been a vocal advocate for privacy, using various protocols and reminding everyone that “privacy is normal, and writing code is not a crime.” It’s almost as if he’s trying to start a new movement: “Code Lives Matter.”

But wait, there’s more! Buterin has also called for the release of Pertsev’s co-founder, Roman Storm, who is currently awaiting trial. He boldly stated that “no man should be left behind,” which is a nice sentiment unless you’re talking about a game of poker.

In a twist of fate, the Ethereum Foundation’s donation follows a similar gesture from Paradigm, which also contributed $1.25 million to Storm’s legal defense. They argued that the prosecution’s case could set a dangerous precedent, making software developers liable for the misdeeds of others. Because, you know, it’s not like we have enough problems in the crypto world already!

And just when you thought it couldn’t get any more exciting, the US District Court for the Western District of Texas recently reversed the OFAC sanctions against Tornado Cash. The Fifth Circuit Court of Appeals ruled that OFAC had “overstepped its congressionally defined authority.” So, it turns out that Tornado Cash’s immutable smart contracts can’t be classified as “property” under federal law. Who knew? It’s like finding out your pet rock is actually a rare gemstone!

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2025-02-27 13:13