Key notes
- Protocol fees from Keyring’s zero-knowledge DeFi vaults are allocated to defend developers accused of facilitating money laundering.
- These cases will set a legal precedent on whether creators of open source privacy software can be held liable for third-party abuse.
- The Ethereum Foundation coordinates sustainable defense funding as a model to protect developers building blockchain tools to enhance privacy.
The Ethereum Foundation and the Kering Network have announced a collaborative initiative aimed at supporting the legal defense of Tornado Cash developers Roman Storm and Alexei Burtsev, who face ongoing legal challenges in the US and Europe for creating privacy-focused open source code.
This program Allocates all protocol fees collected from Keyring’s new zero-knowledge-licensed DeFi vaults over an initial two-month period directly into the developers’ legal defense fund. As of September 10, the program has already raised $22,109.
Fees collected from the Keyring network on September 10 | source: Kering network
The Keyring Network specializes in DeFi-compatible financial instruments, validating users while maintaining privacy on Ethereum
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blockchain. The initiative supports privacy in decentralized networks and links the growth of the DeFi protocol to legal protections for developers who build privacy-enhancing tools.
Legal battle over open source code
Tornado Cash has been a focal point in ongoing legal discussions regarding developer liability, privacy, and sanctions compliance. Roman Storm and Alexei Burtsev are charged with facilitating money laundering and sanctions violations due to the alleged use of Tornado Cash by criminal entities and sanctioned groups.
The prosecution alleged that the developers intentionally operated a platform that supported illicit activity, while the defense maintained that Tornado Cash was designed to promote financial privacy. Currently, Roman Storm has been convicted of creating an illegal money transfer in the United States.
The outcome of these cases is expected to set a precedent on whether the creation of privacy-focused open source software can be criminalized when misused by others. These experiences have sparked an industry-wide debate about balancing innovation and compliance. Legal Defense Fund It is seen as crucial not only to supporting individual developers but also to championing the broader principle of open source development in Web3.
The role of the Ethereum Foundation in protecting developers
The Ethereum Foundation serves as a strategic partner, coordinating the fund and creating a market-aligned mechanism for sustainable defense financing. In addition to organizing donations for protocol fees, the Foundation has pledged direct support and launched matching campaigns to encourage community fundraising to cover developers’ legal expenses.
The foundation emphasizes that the program serves as a blueprint for integrating impact finance into decentralized ecosystems, without relying on sporadic donations or external grants.
Industry leaders argue that supporting Tornado Cash developers is essential not only for individual rights but also for the future of privacy technology on Ethereum and beyond. The initiative highlights the Foundation’s ongoing commitment to legal protection for developers working on privacy and security tools.
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José Rafael Peña Glam is a cryptocurrency journalist and editor with 9 years of experience in the field. He has written for top outlets such as CriptoNoticias, BeInCrypto, and CoinDesk. Specializing in Bitcoin, blockchain and Web3, he creates news, analysis and educational content for a global audience in Spanish and English.
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