In a recent development, the Arbitrum DAO has retracted its proposal aimed at funding the legal defence expenses of Tornado Cash developers, Roman Storm and Alexey Pertsev.
Arbitrum DAO Proposal Removal Raises Questions
The Arbitrum community was surprised by the sudden removal of a proposal seeking financial backing for the legal defence of Tornado Cash developers. The initiative, spearheaded by a delegate known as DK, aimed to allocate approximately $1.3 million worth of ARB tokens from the community wallet to support Storm and Pertsev’s legal battle. However, the proposal was swiftly taken down at the request of its author, leaving many unanswered questions within the community.
Allegations Against Tornado Cash
The proposal’s withdrawal comes amid serious allegations against Tornado Cash and its creators. Accused of laundering more than $1 billion in illicit funds, including those associated with the Lazarus Group hacking organization, Storm and Pertsev face charges of money laundering, sanctions violations, and operating an unlicensed money transfer business in the United States.
Pertsev was arrested in the Netherlands in August 2022, while Storm was apprehended by the Federal Bureau of Investigation in August 2023. Meanwhile, Roman Semenov, the third co-founder of Tornado Cash, remains at large.
Controversy Surrounding Tornado Cash
Despite the legal storm brewing around Tornado Cash, its supporters argue that the platform merely provides decentralized software for money transmission and does not directly engage in such activities. The crackdown on Tornado Cash has not only put the developers’ future in jeopardy but has also raised concerns among privacy-oriented application developers about the broader implications of such actions.
Financial Hurdles for Developers
In addition to legal battles, Storm and Pertsev have encountered financial hurdles in their quest for legal defence. A crowdfunding campaign on GoFundMe aimed at raising funds for their legal fees was abruptly terminated on February 16 due to violating the platform’s terms of service. This setback underscores the challenges faced by developers navigating the legal landscape of the crypto world.