The Ethereum Foundation has contributed $500,000 to support Roman Storm, co-founder of the Ethereum mixer Tornado Cash, in his legal defense ahead of his trial scheduled for July 2025. The foundation also pledged to match up to an additional $750,000 raised from the community. This legal support comes amid ongoing scrutiny of Tornado Cash, which was sanctioned by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) in August 2022 for allegedly facilitating over $1 billion in illicit fund laundering and sanctions evasion. On July 7, 2025, the U.S. government withdrew its appeal in the Tornado Cash lawsuit, leading to the dismissal of the case and effectively ending the enforcement of sanctions on the crypto mixer. The U.S. Court of Appeals vacated the sanctions ruling and ordered dismissal of the related Florida case, marking a potential shift in U.S. crypto privacy enforcement policy. Following this development, Tornado Cash's native token TORN saw a price increase. Meanwhile, the U.S. Department of Justice is reportedly considering charges against staff members of Dragonfly Capital, a venture capital firm that provided early support to Tornado Cash. Prosecutors have informed a judge that a venture capital investor is under investigation related to Tornado Cash, with the matter sealed from public record. Dragonfly has publicly stated it will vigorously defend against any potential charges. The case underscores ongoing tensions between regulatory authorities and privacy-focused crypto technologies.
Venture investor Dragonfly faces potential charges over Tornado Cash involvement https://t.co/Y6nMygAoX2 https://t.co/7znDJEiZqZ
DOJ leaves door open to charge VC partner in Tornado Cash case The DOJ may still charge Dragonfly's Tom Schmidt over Tornado Cash, raising the stakes for VCs. A sealed courtroom slip reveals how far the case could ripple through crypto.
"How SDNY Saved Its Opening Witness With A 100 Year Old Accounting Method" - Aug. 2022: OFAC sanctioned Tornado for allegedly facilitating over $1B in illicit funds laundering -Treasury argues that Tornado is a money laundering platform aiding sanctions evasion -Privacy https://t.co/F32CIk5GsQ