- The ArbitrumDAO proposal for a substantial donation towards Tornado Cash developers, Roman Storm and Alexey Pertsev, has been removed due to concerns over potential legal risks.
- The proposal aimed to contribute between 200,000 and 600,000 ARB tokens, equivalent to $400,000-$1.2 million, to support their legal defense against criminal charges related to their involvement with Tornado Cash.
In a recent development, an ArbitrumDAO proposal to contribute up to $1.28 million in cryptocurrency towards the legal defense of Tornado Cash developers, Roman Storm and Alexey Pertsev, has been withdrawn by its initiator due to growing concerns about potential legal risks.
The proposal, authored by Arbitrum contributor Joseph Axisa, outlined a plan to allocate between 200,000 and 600,000 ARB tokens (equivalent to $400,000-$1.2 million) to a legal defense fund supporting the developers who face criminal charges for their involvement in creating Tornado Cash—a smart contract protocol designed to enhance the privacy of crypto transactions on the Ethereum blockchain.
The deleted proposal, initially published on Wednesday, aimed to direct the funds to the WeWantJusticeDAO’s crowdfunding campaign, which manages the legal expenses amounting to approximately $100,000 per month for Storm and Pertsev.
The proposed mechanism involved utilizing Juicebox, a crypto-focused fundraising platform, to hold the donated tokens. However, due to mounting concerns over potential legal ramifications, the author decided to remove the proposal from Arbitrum’s discourse forum by the evening of March 8, as confirmed by an Arbitrum representative.
Despite the removal of the initial proposal, discussions within the ArbitrumDAO community persist regarding alternative avenues to finance the legal battles faced by the developers.
One potential option being considered involves directing funds to Coin Center, a non-profit organization dedicated to cryptocurrency policy. Sources suggest that a revised version of the donation proposal is likely to reappear on the ArbitrumDAO forum in the coming week.
Since the arrest of Storm and Pertsev, the decentralized finance (DeFi) community has rallied in support of the developers, reflecting the broader sentiments associated with Tornado Cash and its creators. However, the legal implications for the Arbitrum community in making a substantial donation remain uncertain.
Recent incidents, such as GoFundMe shutting down a crowdfunding request for Storm’s legal aid, highlight the complexities and challenges associated with fundraising efforts in support of individuals facing legal troubles within the crypto space. The evolving situation underscores the need for careful consideration and strategic planning to navigate the legal landscape surrounding such initiatives.
Arbitrum (ARB): Enhancing Ethereum’s Horizon with Optimistic Scalability
Arbitrum (ARB) stands as a prominent layer-2 blockchain crafted by Offchain Labs, specifically designed to bolster Ethereum’s scalability securely. The platform currently boasts nearly 500 protocols and safeguards approximately $3.18 billion in Total Value Locked (TVL). Founded by Ed Felten, Steven Goldfeder, and Harry Kalodner, who initially crossed paths at Princeton University, Arbitrum employs optimistic rollups to enhance speed, scalability, and cost-efficiency on Ethereum.
By shifting a substantial computational load away from the Ethereum mainnet, Arbitrum achieves remarkable throughput with reduced fees. Distinguished projects such as Aave (AAVE), Chainlink (LINK), and Sushiswap (SUSHI) have found a home in the Arbitrum ecosystem.
Governed by a decentralized autonomous organization (DAO), the Arbitrum DAO, ARB serves as the native token, granting governance rights to holders. ARB holders have the authority to participate in voting on proposals that impact features, protocol upgrades, fund allocation, and the election of a 12-member Security Council responsible for managing risks within the Arbitrum ecosystem.
Offering an easily accessible alternative to the Ethereum network, Arbitrum ETH facilitates swift, cost-effective operations for exchanges, fintechs, institutional traders, and developers.
This accessibility opens avenues for various applications, including near-instantaneous programmatic payments globally, blockchain-based trading, borrowing, lending, and seamless transactions across diverse sectors such as e-commerce, NFT marketplaces, and gaming.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
