The Battle for Privacy: Solana Policy Institute Donates $500K to Tornado Cash Devs

Solana Policy Institute has become the latest benefactor to Tornando Cash and the pursuit of individual privacy and freedom, allocating $500,000 to the legal defense funds of co-founders Roman Storm and Alexey Pertsev.

A cryptocurrency privacy protocol that allows users to send private transfers, Tornado Cash has been in the spotlight since 2023, when authorities charged Storm and Pertsev with conspiracy to commit money laundering and sanctions violations.

Storm was convicted in the U.S. for conspiracy to operate an unlicensed money-transmitting business earlier this month, while Pertsev was found guilty of money laundering in the Netherlands in 2024.

Both are fighting their convictions and face substantial prison time, with sentences that could impact the future of privacy tech worldwide.

Solana Policy Institute Warns of a ‘Chilling Precedent’

The Solana Policy Institute warned that the prosecutions set a “chilling precedent” that not only threatens the futures of Storm and Pertsev but the software development industry at large. According to the institute,

“If the government can prosecute developers for creating neutral tools that others misuse, it fundamentally changes developers’ risk calculus.”

Crypto developers, founders, and other stakeholders are intently watching the outcome of this high-profile case, which could act as a yardstick for how governments treat software developers and open-source contributors globally.

Privacy tools like Tornado Cash play an important role in protecting user anonymity in an era of heightened financial surveillance.

The prosecution of Storm and Pertsev is widely viewed as a test of the right to financial privacy and the acceptance of privacy-enhancing technology.

The legal battle also highlights growing unease over potential government overreach and the risks associated with targeting software creators.

Understanding the urgency of this case, the broader crypto community has come together in support of the two Tornado Cash developers, viewing their trial as a pivotal battle over personal freedoms and the rights of open-source builders.

Among Tornado Cash’s major supporters, Ethereum co-founder Vitalik Buterin has made multiple contributions.

They include 50 ETH (approximately $170,000) in late 2024 and another 100 ETH (around $240,000), helping the fund reach over $785,000.

The Ethereum Foundation has also committed $500,000 to the cause.

Samourai Wallet: Another Flashpoint in the Privacy Debate

The controversy surrounding Tornado Cash extends to other privacy-focused crypto tools, as well, most notably Samourai Wallet.

Founded by Keonne Rodriguez and William Lonergan Hill, Samourai Wallet was a non-custodial Bitcoin wallet, meaning it never held user funds but offered advanced privacy features such as Whirlpool, a CoinJoin implementation, and Ricochet, a transaction delay tool.

These features aimed to mask user identities and transaction histories, making it popular among privacy advocates.

Samourai’s founders faced criminal prosecution in the U.S., pleading guilty in July 2025 to operating an unlicensed money transmitting business.

The plea deal followed accusations that the wallet processed over $2 billion in suspicious transactions, including funds from darknet markets.

Prosecutors argued that even when such software is non-custodial, running it can make developers liable if the protocol facilitates illicit activities or evades regulatory oversight.

FinCEN, the U.S. Financial Crimes Enforcement Network, has clarified that because Samourai Wallet never held custody of funds, it might not technically qualify as a money services business.

However, it is this nuance that creates ambiguity in regulatory interpretation and strengthens the wider defense that both Tornado Cash and Samourai Wallet should be viewed as fundamentally different from custodial money transmitters.

These trials are not just about personal culpability but privacy and digital sovereignty.

In a world of increasing government oversight and data surveillance, defending the right to build neutral tools remains more critical now than ever.