- Ethereum Foundation pledges $1.25 million for Tornado Cash developer Alexey Pertsev’s legal defense.
- Pertsev’s conviction for money laundering sparks debate on criminalizing privacy tool development.
- Legal challenges against Tornado Cash raise concerns over developer rights and software privacy.
The Ethereum Foundation has pledged $1.25 million to support Alexey Pertsev’s legal defense. Pertsev, a developer linked to the Tornado Cash project, was arrested in the Netherlands in 2022 on money laundering charges.
Pertsev’s Arrest and Conviction
Pertsev’s legal troubles began in 2022 when Dutch authorities arrested him for his role in Tornado Cash.
Even though he had no power over the funds moving through Tornado Cash, Pertsev was found guilty of helping money laundering. In May 2024, he received a five-year and four-month prison sentence.
Following the conviction, Pertsev appealed the ruling and is still fighting the charges. In February 2025, he was granted conditional release from pretrial detention and placed under electronic monitoring, though his legal battle remains ongoing.
Crypto Community Rallies Behind Pertsev
The Ethereum Foundation’s money is part of a larger effort to support developers facing similar legal battles related to Tornado Cash.
Similar to the Ethereum Foundation’s donation, Paradigm, a crypto firm, donated $1.25 million to Tornado Cash’s co-founder Roman Storm for his defense in the U.S. case.
Additionally, Ethereum co-founder Vitalik Buterin contributed 50 ETH, worth approximately $170,000, to the legal defense funds for both Pertsev and Storm.
US and Global Legal Ramifications
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash in 2022. They claimed the platform allowed the laundering of over $7 billion in illegal funds.
Related: US Court Overturns Sanctions on Crypto Mixer Tornado Cash
The actions also connected Tornado Cash to North Korean hacking groups, raising worries about the platform’s role in supporting illegal activity.
Related: Developer Faces $1.2B Laundering Allegations at Tornado Cash
However, the legality of these bans is now being questioned. The U.S. Fifth Circuit Appeals Court decided in November 2024 that OFAC may have overstepped its authority by banning the platform’s smart contracts.
The legal battles of Pertsev and Storm keep getting support from different groups. Amicus briefs filed by the DeFi Education Fund, Coin Center, and the Blockchain Association argue for developer rights to create and share software without fear of being charged.
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