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Solana Policy Institute pledges $500K for Tornado Cash founders’ legal defense

Solana Policy Institute pledges $500K for Tornado Cash founders’ legal defense

CryptopolitanCryptopolitan2025/08/29 18:55
By:By Nellius Irene

Share link:In this post: Solana Policy Institute (SPI) pledged $500,000 to support Tornado Cash founders Roman Storm and Alexey Pertsev’s legal defense. Ethereum figures, including Federico Carrone, gave $500K, the Ethereum Foundation pledged matching donations, and Vitalik Buterin donated 150 ETH (~$673K). SPI warned that the convictions set a dangerous precedent, criminalizing neutral code and chilling open-source innovation.

The Solana Policy Institute (SPI) announced it will contribute $500,000 to support Tornado Cash cofounders Roman Storm and Alexey Pertsev in their ongoing legal battles.

The funding, revealed on August 28, 2025, will be used for Storm’s post-trial motions and Pertsev’s appeal. SPI, a nonprofit dedicated to advancing blockchain policy, emphasized its commitment to defending legal rights in the crypto space.

Storm was convicted on August 6 of operating an unlicensed money-transmitting business in the U.S.. Pertsev was found guilty in a Dutch court in 2024 of money laundering connected to Tornado Cash’s software. Tornado Cash is a decentralized application that enables users to obscure the origins of their digital transactions. Advocates hail it as privacy-focused software, whereas regulators label it a hub for illicit activity.

Ethereum heavyweights rally behind Storm

SPI’s pledge adds to the wider crypto community’s growing wave of support. Since Storm’s conviction , the Free Roman Storm Fund has raised over $5.5 million, which is still short of its $7 million target. Much of the funding has come from prominent figures in Ethereum development, organizational networks, and the investment community.

To help cover his legal costs, Storm made a public plea to the community in July, stating that he needed $1.5 million. The response was swift. In solidarity with fellow developers facing legal challenges, Carrone donated $500,000 worth of Ether to support Roman Storm’s legal defense. “Roman’s legal defense matters because builders everywhere need to know they can push innovation forward and that the community will stand behind them,” he said in his donation announcement.

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As earlier reported by Cryptopolitan , Carrone was detained in Turkey for 24 hours after being accused of helping misuse Ethereum’s privacy protocol. Carrone, known as “Fede’s Intern” on X, shared the news of his release on social media, confirming that he is “safe and free.”He believes the incident is linked to his 2022 research paper, which focused on privacy issues surrounding Ethereum and Tornado Cash.

The Ethereum Foundation also pitched in, pledging to match donations from community members. After Storm’s conviction, it donated $500,000 in June and agreed to match $750,000 in other community support. Ethereum cofounder Vitalik Buterin added a personal donation of 150 ETH, worth over $673,000.

Other organizations in the crypto space followed suit. Meta Cartel DAO allocated funds last month to support Storm’s legal defense. Meanwhile, Julian Zawistowski, founder of the Golem project, confirmed his team donated 50 ETH (worth more than $224,000). This came a week after investment firm Paradigm pledged $1.25 million, with cofounder Matt Huang warning that prosecuting open-source developers for how people use their tools could have a “chilling effect” on innovation.

SPI warns convictions may chill innovation

The Solana Policy Institute presented its support as more than money. In its statement, the group warned that the Tornado Cash cases seriously threaten open-source development.

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The Solana Policy Institute described the government’s theory as simple but dangerous, warning that it could force developers to create code serving government interests simply because their tools might be misused. The group added that prosecuting programmers for building neutral features that others could misuse would undermine developers’ ability to assess risks.

Advocates and lawyers are concerned about this, too. FSBTech, a prominent provider of software for the online gambling industry, said that a conviction of Storm would essentially make any new virtual currency impossible to launch. The Bitcoin Association, a large United States industry lobby, said Storm’s conviction sets a dangerous precedent” that coders could be jailed for writing ‘neutral code’.

Observers note that cases like this are already reshaping how developers approach risk. Many are now questioning whether releasing tools as open-source or “openly licensed” tools was a mistake, given that others might use them in ways the creators never intended.

The U.S. Department of Justice has tried to reassure lawmakers, stating it would not target developers of genuinely decentralized software that cannot control or hold users’ funds.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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