Ethereum Foundation Pledges $1.25 Million to Tornado Cash Developer’s Legal Defense – Crypto News

The Ethereum Foundation has thrown its weight behind Alexey Pertsev, donating $1.25 million to his legal defense, reigniting debates on privacy rights and open-source development.

Ethereum Foundation Champions Developer Rights with Legal Fund Donation

The Ethereum Foundation has committed $1.25 million toward the legal defense of Alexey Pertsev, a developer behind Tornado Cash, marking a significant moment in the ongoing debate over crypto privacy and open-source development rights.

Announcing the contribution on Feb. 26, the Ethereum Foundation underscored the need to defend financial privacy and the right to develop decentralized technology without fear of prosecution. In a public statement, the organization asserted:

“Privacy is normal, and writing code is not a crime.”

Pertsev, who is appealing his conviction in the Netherlands, expressed deep gratitude for the financial backing, noting that it will allow him to focus entirely on the appeal process.

“Thank you Ethereum Foundation for making a huge donation to my legal defense for the case in the Netherlands. I’m very grateful that I can now completely focus on preparing my appeal.”

The move has drawn widespread support across the crypto community, with Ethereum co-founder Vitalik Buterin and various privacy advocates condemning the prosecution of developers who contribute to open-source projects. Privacy-focused exchange 0x0 echoed the sentiment, stating:

“Privacy is a fundamental right, and developers shouldn’t be punished for writing open-source code. This is a crucial moment for the future of crypto privacy.”

Tornado Cash, Sanctions, and the Legal Battle Ahead

Pertsev’s legal challenges began in 2022 after the U.S. Treasury sanctioned Tornado Cash, alleging that the crypto-mixing protocol had facilitated illicit transactions. Dutch authorities subsequently arrested Pertsev, accusing him of money laundering due to his role in developing the platform. In May 2024, a Dutch court sentenced him to five years in prison for failing to prevent criminal activity through the tool he co-developed.

Earlier this month, Pertsev was released from detention, highlighting the financial strain of his legal battle and emphasizing the crucial role of community donations in sustaining his defense efforts.

“Freedom is priceless, but my freedom cost a lot of money. My house arrest was only possible thanks to the work of lawyers, who were paid from your donations.”

Meanwhile, his Tornado Cash co-founders, Roman Semenov and Roman Storm, also face legal scrutiny in the United States, where authorities have charged them with conspiracy to commit money laundering.

However, the broader legal landscape surrounding Tornado Cash took a significant turn earlier this year when a U.S. court overturned Treasury sanctions against the protocol. The ruling determined that the government had exceeded its regulatory authority by targeting immutable smart contracts rather than specific entities or individuals. This precedent could influence ongoing and future cases involving privacy-preserving technologies in the cryptocurrency space.

With the Ethereum Foundation’s backing, Pertsev’s case continues to be a focal point for the debate over the balance between financial privacy, regulatory oversight, and developer liability in decentralized finance.

Ethereum Price Forecast: ETH Faces Rejection at $2,500, Eyes $2,350 Support

Ethereum price forecast suggests increasing downside risks after failing to hold above $2,500, with bearish momentum accelerating toward key support at $2,350.

Ethereum (ETH) extended its losing streak after breaching the psychological $2,500 level, confirming increased sell pressure. The daily chart shows ETH trading within a descending Keltner Channel, with price action rejecting off the midline near $2,500 before slipping toward the lower boundary at $2,342. This suggests intensifying downside pressure, potentially triggering further declines if buyers fail to defend the key $2,350 support.

The MACD indicator remains in negative territory, with the signal line widening below the histogram, reinforcing the growing bearish momentum. The crossover structure reflects sellers dominating price action, aligning with ETH’s 14.65% drop over the past two days. A sustained close below $2,350 could open the path toward a deeper retracement near $2,200.

However, if ETH manages to reclaim $2,500, a short-term relief rally toward $2,700 is possible, contingent on improving buying pressure. The broader trend remains uncertain, with bulls needing a decisive push above $2,700 to negate the bearish outlook and target the $3,055 resistance level.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.