Solana Policy Institute donates $500,000 to Tornado Cash developers’ legal defense
The Solana Policy Institute (SPI) has pledged $500,000 to support the legal defense of Tornado Cash developers Roman Storm and Alexey Pertsev. Both developers are facing potential prison sentences after convictions linked to their work on the crypto mixer platform. SPI said the donation is intended to reinforce a key principle: developing open-source and neutral software should not be treated as a crime, even if the technology is misused by others.
By backing Storm and Pertsev’s legal battle, SPI aims to highlight the dangers of prosecuting software creators rather than actual offenders. The institute warned that such actions risk creating a chilling effect on innovation across the blockchain industry. With this contribution, SPI seeks to defend the freedom to code and protect developers from unfair criminal liability.
What happened
SPI’s $500,000 contribution will be split between the defense teams for Storm and Pertsev. Pertsev was sentenced by a Dutch court to 64 months for facilitating money laundering linked to Tornado Cash activity between July 2019 and August 2022. He appealed his conviction in May 2024. In New York, a jury found Storm guilty earlier this month of conspiracy to operate an unlicensed money transmitting business; jurors did not reach verdicts on separate money laundering and sanctions charges. Storm’s counsel is expected to file post-trial motions seeking to overturn the transmitting conviction.
SPI CEO Miller Whitehouse‑Levine argued that prosecuting developers for neutral, open-source tools would deter innovation across the software industry. If developers can be criminally charged for how others misuse code, he said, the risk calculus for building novel infrastructure changes dramatically.
Why the Solana Policy Institute Tornado Cash legal defense donation matters
The Solana Policy Institute Tornado Cash legal defense donation lands at a moment when courts are testing where tool-building ends and criminal facilitation begins. For crypto and broader open‑source communities, the stakes include:
- Whether writing and publishing code is treated like protected speech or conduct subject to criminal liability.
- How “money transmission” is defined when smart contracts are autonomous and permissionless.
- Whether contributors to decentralized projects face the same exposure as operators of centralized services.
Legal backdrop: the Storm and Pertsev cases
Prosecutors tied Pertsev’s sentence to flows they say moved roughly $1.2 billion in illicit funds through Tornado Cash over a three‑year window. In the U.S., Storm’s split verdict highlighted jurors’ uncertainty on the more expansive laundering and sanctions counts while accepting the narrower transmission theory. Both cases are now in post‑conviction phases that could reshape how courts read developer liability in decentralized finance.
Signals from Washington
Recent remarks from senior Justice Department leadership that “writing code” is not, by itself, a crime have raised hopes that policy will better distinguish between authorship and actionable facilitation. SPI also signed a letter with 100+ crypto organizations urging lawmakers to protect software developers as Congress debates digital‑asset rules. Supporters say the Solana Policy Institute Tornado Cash legal defense donation is consistent with that policy push.
What’s next
Storm’s team plans post‑trial motions that could narrow or overturn his transmitting conviction. Pertsev’s appeal continues in the Netherlands. The industry will watch whether appellate courts refine the boundary between neutral publication of code and participation in financial crimes. For SPI, the Solana Policy Institute Tornado Cash legal defense donation signals an intent to keep funding developer‑rights efforts while these cases progress.
Conclusion
Ultimately, SPI’s $500,000 commitment underscores a broader battle over how societies treat code, authorship, and accountability. The Solana Policy Institute Tornado Cash legal defense donation is both symbolic and practical: it funds appeals while signaling that open‑source builders deserve clear, workable guardrails. As courts weigh Storm’s post‑trial motions and Pertsev’s appeal progresses, policymakers face pressure to distinguish neutral tools from criminal facilitation.
Whatever the outcomes, this debate will shape developer risk, market innovation, and user privacy across decentralized finance. For now, the industry watches closely, investing in legal clarity to ensure building permissionless infrastructure remains possible and worthwhile. Principles matter most.
FAQs
Q1 . Why is the Solana Policy Institute Tornado Cash legal defense donation significant?
A : It channels $500,000 to the developers’ defense and spotlights how courts and policymakers define developer liability for neutral code.
Q2 . Who receives funds from the Solana Policy Institute Tornado Cash legal defense donation?
A : The donation supports the legal teams representing Roman Storm in the U.S. and Alexey Pertsev in the Netherlands.
Q3 . Does the Solana Policy Institute Tornado Cash legal defense donation endorse Tornado Cash’s past use?
A : No. SPI says it defends the principle that building neutral, open-source tools shouldn’t alone trigger criminal charges.
Q4 . How could this affect future crypto policy?
A : The donation aligns with broader advocacy urging lawmakers to protect software authorship while targeting actual criminal facilitation.