TLDR
- Ethereum Backs Tornado Cash Founder with $500K Legal Support and Matching Fund Plan.
- EF Defends Privacy: $500K to Storm’s Case, Plus Treasury Strategy for Long-Term Stability.
- Ethereum Stands for Privacy Rights, Developer Freedom, and Financial Discipline.
- Roman Storm Gets Ethereum’s Backing as Foundation Matches $750K in Community Donations.
- Ethereum Limits ETH Sales, Funds Legal Defense, and Secures 2.5-Year Treasury Reserve.
The Ethereum Foundation has contributed $500,000 to support Tornado Cash founder Roman Storm in his ongoing legal proceedings. Storm faces charges in the United States linked to Tornado Cash’s privacy-enhancing features and financial operations. The foundation also announced plans to match up to $750,000 in community contributions, strengthening its stance on digital privacy and open-source code rights.
Legal Support Signals Ethereum’s Stand on Privacy Tools
Ethereum Foundation has extended financial assistance to Storm, who faces charges of money laundering and violating U.S. sanctions laws. Authorities allege that Storm helped operate Tornado Cash as an unlicensed money transmitter, enabling illicit fund movements. However, the foundation views this case as a broader test of privacy rights in decentralized ecosystems.
I just want to say a huge, heartfelt THANK YOU to the amazing Ethereum Foundation for their incredible $500K donation to my legal defense—and for matching up to $750K from the community! 🙌 Your support means the world to me, especially standing up for privacy and the right to… https://t.co/XwdCPqzopd
— Roman Storm 🇺🇸 🌪️ (@rstormsf) June 13, 2025
Storm’s legal defense comes amid rising scrutiny of crypto privacy tools used in decentralized finance protocols. The foundation has taken a clear position to back developers building such tools, asserting that development alone should not attract criminal liability. This move indicates Ethereum’s commitment to protecting the open-source developer community.
Besides the donation, the foundation invited the public to contribute to Storm’s defense through a matching fund structure. It will match up to $750,000 in community donations, effectively increasing the potential support to $1.25 million. This structure reflects the community’s collective interest in safeguarding developer freedom and privacy innovation.
Foundation Aligns Values with Strategic Actions
The Ethereum Foundation announced a new treasury management plan to reduce long-term market disruption and ensure sustainability. It will maintain a reserve covering 2.5 years of operating expenses while gradually reducing annual spending to 5% over five years. This approach aims to ensure strategic deployment of funds without affecting Ethereum’s token economy.
Moreover, the foundation plans to limit ETH sales and manage assets more conservatively to reduce pressure on the broader crypto market. The policy shift reflects the need to sustain critical development during market downturns while preserving Ethereum’s strategic reserves. Transparency and operational efficiency remain central to this financial update.
The treasury update aligns with Ethereum’s broader efforts to stabilize its ecosystem funding and improve community trust. It allows the organization to intervene in key areas when needed without long-term stability. The combination of financial discipline and targeted support illustrates a balanced approach to growth and responsibility.
Ethereum Foundation’s recent actions align with practical decisions. The support for Tornado Cash’s founder underscores its belief in privacy as a fundamental right. Likewise, the revised treasury strategy indicates discipline in navigating volatile market conditions.
