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Why Tornado Cash’s Trial Is Important as It Seeks Donations

DailyCoinDailyCoin2024/01/30 04:19
By:DailyCoin
  • Tornado Cash developers are gearing up to face money laundering charges in the Netherlands and the U.S.
  • Ahead of the trials, an activist group has launched a fundraiser to aid their defense.
  • The outcome of the cases is likely to have far-reaching impacts on open source and Web3 development.

Popular crypto mixer Tornado Cash has dominated headlines for the past two years amid a crackdown spearheaded by law enforcement in the U.S. and the Netherlands over the use of the platform by North Korean hackers to launder illicit funds. The debacle has culminated in the project’s founders, Alexey Pertsev, Roman Storm, and Roman Semenov, facing separate money laundering charges for allegedly facilitating this illicit movement of funds.

As the trials near, these developers have turned to crypto community members and privacy advocates for support as they stare down lengthy jail terms of up to 20 years if found guilty.

Tornado Cash Devs Bet on New Fundraiser

On Monday, January 22, an activist group, Free Pertsev Storm, launched a fundraiser to aid the legal defense of the eponymous Tornado Cash developers, offering three ways for supporters to contribute to their defense. These include a platform called Juicebox, GoFundMe, and WeWantJusticeDAO.org.

Justice DAO is fundraising on @juiceboxETH until 02/22 for the legal aid of @TornadoCash developers— @alex_pertsev and @rstormsf . Here's a recap of what's going on and how you can help defend the right to privacy and to publish code ⤵️ https://t.co/W4dHSeSNW9

— Free Pertsev Storm (@FreeAlexeyRoman) January 22, 2024

Calling for support in a video on X , Storm emphasized the need for the Tornado Cash developers to build a strong defense in light of the precedent-setting nature of the case and potential far-reaching impacts on open source and Web3 development.

"Whether you're passionate developer like me involved with Web3 or just care about software and privacy, this legal battle will affect you. So please help contribute to my legal defense because this case will set major precedent for years to come," he asserted.

The fundraiser is billed to last for a month up until February 22. At the time of writing, the group has raised over $200,000, including 87.18 ETH (worth over $192,000) on Juicebox and over $16,000 raised on GoFundMe . The amount that has been raised through WeWantJusticeDAO.org is currently not publicly available. Free Pertsev Storm estimates that the developers would need between $90,000 and $100,000 monthly to cover their legal fees.

The fundraiser comes roughly two months before Pertsev’s trial, starting on March 26. On the other hand, Storm’s trial begins on September 23. Roman Semenov, the other indicted founder, remains at large.

What Is at Stake in the Tornado Cash Trial

Opposing the actions of regulators and law enforcement agencies against Tornado Cash and its founders, several crypto proponents have argued that the platform provides legitimate use cases, adding that it is unfair to hold the platform and its developers responsible for how a few people choose to use it. 

However, these arguments have yet to hold up in court. In a case filed by six plaintiffs and backed by Coinbase in 2023, the court granted summary judgment in favor of the U.S. Treasury’s Office of Foreign Asset Control (OFAC) against claims that the agency had overstepped by sanctioning the Tornado Cash platform. 

Judge Robert Pitman argued that Tornado Cash and its DAO could be likened to a corporation and its shareholders and, as such, could be sanctioned by OFAC, countering arguments that the protocol was just a piece of open-source code.

There is a lingering fear about how the case against the Tornado Cash developers could impact open-source development and the development of privacy solutions in Web3.

On the Flipside

  • Following actions against Tornado Cash, the U.S. Treasury seeks to implement a policy requiring mass reporting of crypto mixer transactions by exchanges.

Why This Matters

The case against Tornado Cash developers will likely significantly impact how the law perceives crypto protocols.

Read this for more on Tornado Cash’s recent woes:
Tornado Cash Founders Face Court over “Assisted Laundering”

Learn about the most recent scam targeting self-custody wallet users:
Trust Wallet Warns of KYC Email Scam: How To Stay Safe

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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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