Institute connected to Solana commits half a million dollars to defense of Tornado Cash creators in legal proceedings
In a recent development, the Solana Policy Institute has voiced concerns over the legal cases involving Tornado Cash, a decentralised application that offers privacy for digital transactions. The institute warns that these cases pose a significant threat to open-source development in the crypto industry.
Tornado Cash, which allows users to obscure the origins of their transactions, has been under scrutiny. In 2024, Alexey Pertsev, one of its co-founders, was found guilty by a Dutch court of money laundering connected to the software. Roman Storm, another co-founder, is currently facing similar charges.
Ethereum co-founder Vitalik Buterin and prominent figures like Federico Carrone and Sam Bankman-Fried have shown their support for the Tornado Cash co-founders. Buterin donated 150 ETH (approximately $673,000), while Bankman-Fried donated $500,000 worth of Ether. Carrone's contribution was not specified.
The Bitcoin Association, a large United States industry lobby, has also expressed concerns, stating that Storm's conviction sets a dangerous precedent. They argue that it could imply that coders could be jailed for writing 'neutral code'.
FSBTech, a prominent provider of software for the online gambling industry, shares similar concerns. They fear that a conviction for Storm could make it impossible to launch new virtual currencies.
The concerns raised by the Solana Policy Institute and others suggest a growing apprehension in the crypto community about the potential legal implications of developing and releasing decentralised software. Observers note that cases like this are already reshaping how developers approach risk, with many questioning whether releasing tools as open-source or 'openly licensed' tools was a mistake.
The Solana Policy Institute's support for the Tornado Cash co-founders' legal defence is more than just financial. They also express concerns about the potential chilling effect on innovation. The Ethereum Foundation has pledged to match donations from community members to support the co-founders' defence.
The Free Roman Storm Fund, set up to support Storm's legal defence, has raised over $5.5 million but is still short of its $7 million target. Notable contributors include the Solana Policy Institute, which pledged $500,000, and investment firm Paradigm, which pledged $1.25 million.
In a bid to reassure lawmakers, the U.S. Department of Justice has stated it would not target developers of genuinely decentralised software that cannot control or hold users' funds. However, concerns remain about prosecuting programmers for building neutral features that others could misuse.
The Solana Policy Institute describes the government's theory as simple but dangerous, warning that it could force developers to create code serving government interests. This broader discussion in the crypto industry highlights the need for a balance between innovation, decentralization, and regulatory compliance.
Read also:
- Trump and Xi speak over the phone, according to China's confirmation.
- Unlawful MMO gold peddler cultivates around half a million dollars in income, triggering a tax dispute, followed by developers unveiling strategies to clamp down on real-world transactions
- Prices of transit tickets in Berlin and Brandenburg are on the rise
- Linde Wins Major Engineering Design Contract for Equinor's Low Carbon Hydrogen Project at H2H Saltend, Progressing Towards a Greener Future
