In recent developments DAO decision Withdrew an offer to help Tornado Cash developers Roman Storm and Alexey Pertsev with their legal defense costs.
Removal of Arbitrum DAO proposal raises questions
The Arbitrum community was surprised by the sudden removal of a proposal seeking financial support for Tornado Cash developers’ legal defense. The scheme, led by a representative known as DK, aimed to allocate approximately $1.3 million worth of ARB tokens from community wallets to support Storm and Pertsev’s legal fight. However, the suggestion was quickly removed at the author’s request, leaving many unanswered questions within the community.
Tornado Cash Charges
The withdrawal of the offer comes amid serious allegations against Tornado Cash and its creators. Accused of laundering more than $1 billion in illicit funds, including funds associated with the Lazarus Group hacking organization, Storm and Pertsev face charges of money laundering, violation of sanctions, and operating an unlicensed money transfer business in the United States.
Pertsev was arrested in the Netherlands in August 2022, and Storm was arrested by the Federal Bureau of Investigation in August 2023. Meanwhile, Tornado Cash’s third co-founder Roman Semenov remains arrested.
Controversy Surrounding Tornado Cache
Despite the legal storm brewing tornado cache, proponents claim that the platform merely provides decentralized software for transferring funds and does not directly engage in such activities. The crackdown on Tornado Cash not only put the future of developers at risk, but also raised concerns among privacy-oriented application developers about the broader implications of such a move.
Financial Hurdles for Developers
In addition to the legal battle, Storm and Pertsev faced financial obstacles in pursuing their legal defense. A crowdfunding campaign on GoFundMe aimed at raising funds for legal costs ended abruptly on February 16 due to violations of the platform’s terms of service. These setbacks highlight the difficulties faced by developers navigating the legal landscape of the cryptocurrency world.