The Ethereum Foundation (EF) has announced a $1.25 million donation to support Alexey Pertsev, a Tornado Cash developer, in his legal battle. Pertsev was sentenced to 64 months in prison in May 2024 by a Dutch court for money laundering linked to Tornado Cash.
Tornado Cash is an Ethereum-based decentralized privacy tool designed to obscure transaction histories. Typically, Ethereum transactions are fully transparent, with every movement traceable on the blockchain.
Tornado Cash changes this by mixing ETH deposits in a shared pool, allowing users to withdraw their funds to a new, unlinked address using a secret code. Smart contracts manage the process, ensuring privacy without a central authority. Launched in 2019, Tornado Cash was developed by Alexey Pertsev, Roman Storm, and others who saw privacy as a fundamental blockchain principle.
However, the platform’s ability to shield transactions has sparked global controversy. The U.S. Treasury sanctioned Tornado Cash in 2022, alleging it had facilitated over $7 billion in illicit transactions, including funds tied to North Korea.
This led to legal action against its developers, including Pertsev. Now, the EF’s $1.25 million pledge underscores its stance that writing privacy-focused code should not be criminalized.
Following his release earlier this month, Pertsev is currently under house arrest and preparing an appeal. The EF has defended its donation, stating, “Privacy is normal, and writing code isn’t a crime.” The decision has triggered a fierce debate within the Ethereum community.
On social media platform X, some applaud the EF for defending open-source development, calling the move a stand for privacy rights and against government overreach. Others criticize it, arguing that it entangles Ethereum in unnecessary legal and political battles.
Vitalik Buterin has been a vocal supporter of Tornado Cash’s developers. In 2024, he personally donated 50 ETH (worth about $170,000 at the time) to help with their legal defense. At a Berlin conference that year, he argued that privacy tools like Tornado Cash serve a legitimate purpose and that developers shouldn’t be punished for how their software is used.
As for the EF’s finances, Buterin has clarified that ETH sales fund research, development, and legal aid like this—not personal gains. In January 2025, he announced a major governance overhaul, taking charge of forming the EF’s new leadership team as part of a year-long restructuring.
Meanwhile, internal EF tensions have surfaced. Aya Miyaguchi, the EF’s former director and now president of the Ethereum Foundation, has faced backlash, with Buterin condemning what he calls toxic attacks that could drive away talent.
Regulatory concerns have also influenced EF decisions, including its choice to sell ETH rather than stake it, to maintain neutrality and avoid compliance risks.
