Solana Policy Institute Commits $500,000 to Aid Legal Defense of Tornado Cash Founders Roman Storm and Alexey Pertsev

Support for Tornado Cash Founders

• Funding Announcement: The Solana Policy Institute (SPI) has pledged $500,000 to assist Tornado Cash cofounders Roman Storm and Alexey Pertsev in their legal battles, with the funding aimed at Storm’s post-trial motions and Pertsev’s appeal.
• Legal Context: Storm was convicted on August 6, 2025, for operating an unlicensed money-transmitting business, while Pertsev was found guilty in 2024 of money laundering related to Tornado Cash, a decentralized application designed to obscure digital transaction origins.

Community Response and Fundraising Efforts

• Community Support: Following Storm’s conviction, the Free Roman Storm Fund has raised over $5.5 million, although it is still short of its $7 million goal. Contributions have come from notable figures in Ethereum development and the investment community.
• Individual Contributions: Carrone donated $500,000 in Ether to support Storm, emphasizing the importance of legal defense for developers. Ethereum cofounder Vitalik Buterin also contributed 150 ETH, valued at over $673,000, while the Ethereum Foundation pledged to match community donations, contributing $500,000 and agreeing to match an additional $750,000.

Implications for Open-Source Development

• Concerns Over Legal Precedents: The SPI warns that the convictions of Storm and Pertsev pose a significant threat to open-source development, suggesting that such legal actions could compel developers to create code that aligns with government interests due to potential misuse.
• Industry Reactions: Organizations like FSBTech and the Bitcoin Association have expressed concerns that these convictions could hinder the launch of new virtual currencies and set a dangerous precedent for prosecuting developers for creating neutral code.

Shifts in Developer Mindset

• Changing Perspectives: The ongoing legal challenges are prompting developers to reconsider the risks associated with releasing open-source tools, as they may be misused in ways that the creators did not intend.
• Government Assurances: The U.S. Department of Justice has attempted to reassure lawmakers that it will not target developers of genuinely decentralized software that cannot control user funds, though skepticism remains within the developer community.