How a Crypto Mixer Works
The founders of crypto mixer Tornado Cash were accused of laundering hundreds of millions in "criminal proceeds" for North Korean hacking group Lazarus. Coin Center

KEY POINTS

  • GoFundMe reportedly canceled the fundraiser under Term 22 of its terms of use
  • Storm said he was arrested even though he was cooperating with U.S. authorities
  • The crypto mixer's founders were accused of federal money laundering and violating sanctions

Crowdfunding platform GoFundMe has shut down a fundraiser that was started to collect funds to help cryptocurrency mixer Tornado Cash in its legal battle.

The fundraiser was canceled Wednesday, with GoFundMe saying it was shut down due to a breach of the platform's terms of service, as per an announcement from X (formerly Twitter) account Free Pertsev & Storm.

"Yesterday, @gofundme notified the campaign organizers that the fundraiser for @rstormsf's legal defense was cancelled. They cite Term 22 of their terms of service, which can be interpreted to mean they simply didn't like the fundraiser," the account raising awareness about the legal battle of Tornado Cash co-founder Roman Storm and the platform's developer Alexey Pertsev announced on X on Thursday.

Term 22 notes that fundraisers agree not to use the platform's services for the "explicit purpose of promoting" any activity that GoFundMe "may deem" is unacceptable, or could "expose GoFundMe, its employees or Users to any harm or liability of any type."

The Free Pertsev & Storm movement apologized to donors for inconvenience caused by their use of the crowdfunding platform to support Tornado Cash. The campaign also asked the platform to provide a "more detailed explanation" for canceling the fundraiser. "You routinely allow legal defense fundraising campaigns, so why are you interfering with this one?"

Storm and Tornado Cash co-founder Roman Semenov were charged with federal money laundering and sanctions violations in August last year. Storm was arrested as the U.S. Department of Justice (DOJ) alleged that the crypto mixer's founders were responsible for laundering more than $1 billion in "criminal proceeds," with hundreds of millions of the said proceeds allegedly for Lazarus, a notorious North Korean hacking group.

He posted bail a day after his arrest. His lawyer, Brian Klein, said he was disappointed over Storm's arrest since his client only helped develop the software for Tornado Cash. Klein said the "novel legal theory" that prosecutors based their arguments in Storm's case has "dangerous implications for all software developers."

Last month, Storm asked Tornado Cash community members for donations to help with his legal fees. He said "heavily armed" authorities "raided" his home and made the arrest "despite my ongoing cooperation with U.S. authorities."

Web3 venture fund Bankless Ventures' Ryan Adams, who donated $10,000 through the fundraiser, said he will resend his donation using crypto instead.

"Good thing we have an uncensorable money system so we can still fund civil liberties like the right to a fair trial," he wrote on X.

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