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Coinwy > Blog > News > Solana Policy Institute Commits $500K for Tornado Cash Defense
News

Solana Policy Institute Commits $500K for Tornado Cash Defense

Thiago Alvarez
Last updated: August 29, 2025 2:06 am
Thiago Alvarez
Published: August 29, 2025
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Solana Policy Institute Commits $500K for Tornado Cash Defense
Solana Policy Institute Commits $500K for Tornado Cash Defense
Key Points:
  • Solana Policy Institute commits $500K to Tornado Cash defense.
  • Significant move for open-source developer liability.
  • Crypto community shows strong support for developers.

The Solana Policy Institute announced a $500,000 grant to support the legal defense of Tornado Cash developers Roman Storm and Alexey Pertsev on August 28, 2025.

MAGA Finance

This funding underscores a critical battle over developer liability in open-source crypto tools, influencing market dynamics for Ethereum and Solana.

The Solana Policy Institute (SPI) has allocated $500,000 to defend Tornado Cash developers. The grant emphasizes SPI’s commitment to protecting open-source innovation amid legal challenges for creating neutral crypto tools.

Roman Storm and Alexey Pertsev, developers of Tornado Cash, face legal charges in different jurisdictions. SPI’s contribution highlights their stance against criminalizing code development, asserting it as a fundamental right.

The support from SPI is seen as a major statement in the crypto community. It underlines the importance of differentiation between software creation and illicit activities performed using that software.

“These prosecutions continue to set a chilling precedent that threatens the software development industry. If the government can prosecute developers for creating neutral tools that others misuse, it fundamentally changes developers’ risk calculus.” — Miller Whitehouse-Levine, CEO, Solana Policy Institute

SPI’s financial backing of Tornado Cash developers may influence regulatory discussions and support sentiments in open-source ecosystems. The case could shape future legal interpretations concerning cryptocurrency technologies.

The $500,000 defense fund is pivotal for Tornado Cash developers, amidst raising $1.9 million so far. This funding aims to cover the total $3.5 million in legal expenses. Additional backing comes from various crypto organizations showing solidarity.

The outcomes of this case could set precedents for financial regulations affecting crypto technology. In similar historical cases, regulatory pressures have influenced market behaviors in privacy coin sectors and decentralized finance ecosystems.

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