Ethereum Foundation Donates $1.25M for Tornado Cash Dev Alexey Pertsev’s Legal Defense

The Ethereum Foundation (EF) is set to donate $1.25 million to the legal defense of Alexey Pertsev, a developer associated with the cryptocurrency-mixing platform Tornado Cash.

Pertsev, who has been embroiled in a prolonged legal battle in the Netherlands, was sentenced to 64 months in prison for money laundering in May 2024.

The move comes amid renewed scrutiny of Tornado Cash and its legal ramifications. It also marks significant changes in Ethereum Foundation leadership, with Aya Miyaguchi assuming the role of EF president.

Tornado Cash Sanctions Overturned — A Boost for Pertsev’s Appeal?

Alexey Pertsev’s legal troubles began in August 2022, when Dutch authorities arrested him after the U.S. Treasury sanctioned Tornado Cash.

The Treasury alleged that the service facilitated the laundering of over $7 billion, including $455 million in assets linked to North Korea’s Lazarus Group.

Pertsev’s conviction in May 2024 for laundering $1.2 billion through the platform was met with outrage from privacy advocates and crypto developers who argued that he was merely developing open-source software rather than participating in illicit activity.

His appeal gained significant traction following a November 2024 ruling by a U.S. federal appeals court that declared sanctions against Tornado Cash unlawful.

This ruling supported the argument that prosecuting developers for misusing their software by others sets a dangerous precedent.

Ethereum co-founder Vitalik Buterin has been among those expressing concerns over Pertsev’s conviction, arguing that writing code should not be criminalized.

Pertsev, who has now been released under electronic monitoring, stated that returning home will allow him to work on his appeal and “fight for justice.”

While acknowledging that house arrest is not full freedom, he noted that it is “better than prison.”

Notably, the U.S. District Court for the Western District of Texas’s reversal of sanctions in January 2025 has added another layer of complexity to the case.

The ruling, which deemed the Treasury’s initial decision to blacklist Tornado Cash as unlawful, may provide critical legal precedent for Pertsev’s appeal.

While Pertsev’s appeal gains momentum, other Tornado Cash developers face their own legal struggles.

Roman Storm and Roman Semenov, co-developers of the protocol, are facing similar allegations of money laundering and sanctions violations in the U.S. Storm’s trial is set for September 2025, while Semenov remains at large.

Storm, who was arrested after Tornado Cash was added to the U.S. sanctions watchlist, has vehemently denied the charges against him.

In March 2025, he filed a motion to dismiss all three charges, arguing that Tornado Cash does not fit the legal definition of a financial institution and that he had no control over how users engaged with the platform.

However, the DOJ argues that Storm’s role in the project makes him accountable for its illicit use, regardless of his intent.

Ethereum Foundation’s Leadership Shift Amid Legal and Governance Challenges

The Ethereum Foundation’s $1.25 million donation set to defend Pertsev coincides with a significant leadership transition. Aya Miyaguchi, EF’s executive director since 2018, has been appointed president.

In a blog post, Miyaguchi emphasized that her new role will focus on institutional relationships and expanding Ethereum’s influence globally.

Her transition follows criticism from the Ethereum community regarding EF’s transparency and decision-making processes.

Some developers and community members have argued that the foundation has not done enough to advance Ethereum’s scalability and governance structures.

As the Ethereum Foundation navigates these internal and external pressures, its latest move, supporting Pertsev’s legal battle, adds to its pledged commitment to privacy and decentralized development.

However, the broader implications of these legal battles for Pertsev and other privacy-focused developers remain uncertain.

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