GoFundMe has recently taken down a fundraiser aimed at supporting the legal defense of the cryptocurrency mixer Tornado Cash’s founders, who are currently facing charges in the United States. This move has sparked discussions about the crowdfunding platform’s policy enforcement and the broader implications for financial censorship.

Crowdfunding Campaign Cancellation

On February 14, a crowdfunding effort on GoFundMe was abruptly terminated. The campaign was designed to raise funds for Roman Storm and Alexey Pertsev, the figures behind Tornado Cash, who are embroiled in legal troubles with U.S. authorities. The cancellation, attributed to a violation of GoFundMe’s terms of service, has led to all contributors receiving refunds. Notably, Ryan Adams of Bankless Ventures redirected his $10,000 contribution back to Storm through a cryptocurrency transaction, underscoring the need for uncensorable support mechanisms.

Shifting to Crypto-Based Funding

Despite GoFundMe’s intervention, the fundraising initiative quickly pivoted to JuiceBox, a cryptocurrency funding platform. Here, the campaign has successfully amassed 316.75 Ether. This resilience in the face of adversity highlights the cryptocurrency community’s commitment to supporting its members through decentralized means.

Community Reaction and Legal Battle

The GoFundMe incident has raised eyebrows within the Tornado Cash community, prompting debates over the consistency of the platform’s policy enforcement. Meanwhile, Storm and Pertsev stand against federal charges, including money laundering and sanctions violations, claiming their innocence. Storm’s release on bond and confinement to certain U.S. states pending trial only adds complexity to the ongoing situation.

High-Profile Support and Privacy Advocacy

Edward Snowden, a well-known advocate for privacy rights, has publicly supported Storm, emphasizing the critical nature of privacy and a fair legal process. Snowden’s backing brings significant visibility to the case, which occurs amidst reports of Tornado Cash’s previous involvement in laundering substantial funds, drawing links to the notorious Lazarus Group.

Impact of Sanctions on Tornado Cash

U.S. sanctions imposed in 2022 have led to a dramatic decrease in Tornado Cash’s transaction volume, as much as 85% according to TRM Labs’ October 2023 report. These sanctions, aimed at the service’s alleged facilitation of sanction evasion, have had a tangible impact on Tornado Cash’s operations, highlighting the government’s tightening grip on cryptocurrency activities linked to illicit dealings.

You might also be interested in: “Do Kwon retains Dentons law firm to defend against US charges.”