The Ethereum Foundation and Keyring Network have launched a legal defense fund to support Tornado Cash developers Roman Storm and Alexey Pertsev, who are facing legal challenges in the US and Europe for their work on privacy-focused, open-source code.

Tornado Cash, created in 2019 by Storm, Pertsev, and Semenov, is a decentralized protocol designed to enhance user privacy on Ethereum by disassociating sender and receiver addresses.

The defense fund is financed through protocol fees from Keyring Network's new zero-knowledge, permissioned DeFi vaults, which have already raised over $22,000 as of September, with additional support from the Ethereum Foundation.

The Ethereum Foundation is coordinating the initiative, pledging support, matching community donations, and aiming to establish a sustainable funding model to defend privacy protocol developers and promote innovation.

Roman Storm was convicted in August 2025 for conspiracy to commit money laundering and sanctions violations, with prosecutors alleging he laundered over $1 billion through Tornado Cash, including funds linked to North Korea's Lazarus Group.

Legal cases against Tornado Cash involve allegations of facilitating money laundering and sanctions violations, raising concerns about the criminalization of open-source privacy tools and developer liability.

Storm was indicted in August 2023 and found guilty on one charge in August 2025, highlighting the ongoing legal battles faced by Tornado Cash developers.

Pertsev expressed gratitude for the support, noting that legal proceedings are ongoing and further investigations are required, while the case continues to spark debate about privacy rights.

Keyring Network develops compliant DeFi tools that prioritize user privacy and regulatory adherence, including zkVerified vaults designed for institutional investors.

In August 2022, Tornado Cash was sanctioned by the US OFAC, making its use illegal for Americans, which led to Storm and Pertsev's arrest and conviction, with Semenov remaining at large.

The initiative aims to demonstrate a sustainable, market-driven funding model that supports privacy technology development and defends open-source privacy code, emphasizing the importance of protecting innovation.

The outcome of these legal cases is expected to influence industry standards on developer liability and the future of privacy technology in blockchain, making the defense fund a crucial support mechanism for open-source Web3 development.