Despite the proposal’s withdrawal, supporters are continuing to look for other ways to support it.
A source familiar with the situation informed The Block that Arbitrum DAO has reversed its earlier intention to provide up to $1.2 million to the Tornado Cash team, consisting of Roman Storm and Alexey Pertsev, who are now involved in legal disputes. A contributor to Arbitrum named ImmutableLawyer suggested this week that the developers’ legal defense fund get between $400,000 and $1.2 million (200,000 to 600,000 ARB).
In connection with their work on Tornado Cash, a technology for smart contracts that obfuscates cryptocurrency transactions on the Ethereum network, Storm and Pertsev are now facing accusations. Because of this, criminals have begun using the technique for money laundering, which has garnered a lot of attention from law enforcement.
Others who were in favor of the initiative are still looking for ways to help financially. Putting funds into Coin Center, a nonprofit that focuses on crypto policy, is one possible option. The goal is to lend a hand to WeWantJusticeDAO’s fundraising effort, which aims to pay the developers’ anticipated $100,000 in monthly legal expenses.
In August 2022, the US Treasury sanctioned Tornado Cash, a cryptocurrency mixing business, on charges that it laundered funds for harmful cyber actors, such as the Lazarus Group. The assets of Tornado Cash were frozen, and the penalties forbade any transactions to or from the service, as well as the code for the mixer.
There are worries about privacy issues and the possibility of future shutdowns of comparable sites due to the Treasury’s crackdown. Coinbase has backed a lawsuit challenging these penalties by certain people against the US Treasury Department.
Furthermore, a GoFundMe effort that sought to gather money for Storm and Pertsev’s legal defense was deleted on February 14 for violating their rules of service.
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