$500,000 Pledge: Solana Policy Institute Steps In for Tornado Cash Case

TLDR:

• Solana Policy Institute pledged $500K to Tornado Cash developers Roman Storm and Alexey Pertsev for ongoing legal defense.
• Storm was convicted in the U.S. this August while Pertsev faced a money laundering conviction in a Dutch court last year.
• The institute argued that developers cannot be criminally liable for neutral open-source crypto tools they no longer control.
• DOJ leadership recently stated writing code without intent is not a crime, signaling a shift in enforcement policy.

The debate around crypto privacy tools took another turn this week. Solana Policy Institute (SPI) announced it will donate $500,000 to support the defense of Roman Storm and Alexey Pertsev, two developers behind Tornado Cash. 

The protocol allows users to make private transactions without relying on third-party custody. Both developers face convictions and lengthy prison terms. The move raises broader concerns about how governments treat open-source software creators.

Crypto Developers Face Legal Pressure Over Tornado Cash and Blockchain Privacy

According to a statement from SPI, Storm and Pertsev were targeted for their role in deploying Tornado Cash, a crypto privacy protocol that they no longer controlled after launch. 

Roman Storm was convicted earlier this month in the U.S. for conspiracy to operate an unlicensed money-transmitting business. Alexey Pertsev was convicted last year in the Netherlands on money laundering charges. Both men are currently appealing their cases.

Tornado Cash operates as open-source software, meaning developers could not change who accessed the protocol once it was deployed. 

SPI argued that the legal actions against the two men rely on a fundamental misunderstanding of blockchain mechanics. The group warned that prosecuting developers for code misuse sends a dangerous message to the broader software industry.

On social media, the Solana Policy Institute stressed that these cases create a chilling precedent. The group noted that if governments can charge developers for others’ misuse, it may deter new innovation. 

This position echoed earlier concerns voiced by crypto advocates, who argue that legal liability should not extend to code authors with no operational role.

The institute also pointed to global competition for developer talent. By holding coders accountable for independent software misuse, regulators risk pushing innovation abroad. The funding announcement signals SPI’s commitment to supporting those who continue to challenge these legal outcomes.

DOJ Policy Shift and Industry Response

In recent remarks, Acting Assistant Attorney General Matthew R. Galeotti stated that writing code alone should not constitute a crime. 

He emphasized that the Department of Justice would not use indictments as a replacement for policymaking. SPI welcomed this position, saying it hoped to see the new approach reflected in active prosecutions.

Storm is expected to file post-trial motions in the U.S., while Pertsev has already appealed his case. The financial support from SPI could help them pursue extended legal strategies as they continue to challenge their case.

Industry voices have long argued that privacy protocols like Tornado Cash are neutral tools. By donating to the defense, SPI reinforced its stance that open-source developers should not face criminal penalties for code they cannot control. The organization noted that it will keep advocating for those caught in similar disputes.

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