Arbitrum withdraws its intention to provide cryptocurrencycurrency to Tornado Cash inventors Roman Storm and Alexey Pertsev. The proposal proposed donating 200,000 to 600,000 ARB tokens, totaling up to $1.2 million, to the creators’ legal defense fund.
Token holders dropped the plan because they were concerned about potential legal issues. Tornado Cash, a smart contract system designed to conceal Ethereum transactions, is being investigated for allegedly laundering criminal monies, especially those affiliated with the Lazarus Group.
Furthermore, the United States has sanctioned Tornado Cash, essentially discouraging residents from utilizing the service, prompting some to advocate for developers’ rights to create privacy-preserving software.
The now-deleted plan sought to contribute funds to the _WeWantJusticeDAO_ crowd-funding campaign, which organizes coverage of Storm and Pertsev’s legal bills, which are believed to be around $100,000 per month. The contributed tokens were to be stored on Juicebox, a cryptocurrencycurrency-focused fundraising site.
As the legal battle over Tornado Cash continues, the withdrawal of Axisa’s proposal highlights the complexities and potential risks of assisting entities or individuals subject to legal action, especially in the rapidly evolving world of cryptocurrencycurrency and decentralized finance.
