Ethereum’s Privacy Tools Face Legal Scrutiny as Tornado Cash Sanctions Barred from Roman Storm Trial

In a significant development for the cryptocurrency sector, a federal judge has ruled that discussions regarding the U.S. Treasury's sanctions against Tornado Cash, a privacy tool often associated with Ethereum, will not be permitted during the trial of developer Roman Storm. The decision, made by District Judge Katherine Polk Failla, cites potential juror confusion due to the complex and fluctuating nature of the sanctions—imposed in August 2022, lifted in March 2024, and later declared illegal by a Texas court. This ruling underscores the ongoing legal and regulatory challenges facing privacy-focused technologies in the blockchain space. As the crypto community watches closely, the outcome of this case could have far-reaching implications for Ethereum and other platforms that prioritize user anonymity. The trial's exclusion of sanctions-related testimony highlights the delicate balance between regulatory oversight and innovation in the rapidly evolving digital asset landscape.

Judge Bars Discussion of OFAC's Tornado Cash Sanctions at Roman Storm Trial

A federal judge has ruled that the U.S. Treasury's sanctions against privacy tool Tornado Cash cannot be referenced during the upcoming trial of developer Roman Storm. District Judge Katherine Polk Failla determined that testimony about the sanctions—imposed in August 2022, lifted in March 2024, and later deemed illegal by a Texas court—would confuse jurors. "Mental gymnastics" WOULD be required to parse their complex history, she argued.

Prosecutors were given until Wednesday to submit a critical "unicorn document" that might justify mentioning post-sanctions conduct. The decision underscores the legal ambiguity surrounding crypto privacy tools and their developers. Market observers note the case could set precedents affecting Ethereum-based privacy protocols.

BTCS Stock Surges 110% After Announcing $100 Million Ethereum Acquisition Strategy

Blockchain Technology Consensus Solutions (BTCS), a Nasdaq-listed firm, witnessed its shares skyrocket by over 110% following the disclosure of a $100 million plan to accumulate ethereum (ETH). The company will leverage a mix of traditional and decentralized finance (DeFi) avenues, including an existing $250 million at-the-market equity offering and a convertible debt arrangement with ATW Partners. Stablecoin borrowing via Aave will further supplement the capital raise.

CEO Charles Allen underscored Ethereum's pivotal role in the evolving digital asset landscape, stating, "Ethereum's long-term value proposition is undeniable—it's the backbone of tomorrow's financial infrastructure." The funding approach aims to minimize shareholder dilution while maintaining strategic flexibility.

BTCS has been an early institutional adopter of ETH, amassing 14,600 tokens worth $38 million since 2021 and actively participating in network validation. This move aligns with a broader trend of corporate treasury diversification into crypto assets, echoing MicroStrategy's pioneering Bitcoin accumulation strategy.

GameSquare Allocates $100M to Ethereum Treasury Strategy in Partnership with Dialectic

GameSquare Holdings, a Nasdaq-listed gaming and media firm, has approved a $100 million phased investment in Ethereum as part of a strategic treasury overhaul. The company priced a public offering of 8.42 million shares at $0.95 to raise $8 million in initial capital, with the bulk earmarked for its new ETH-based treasury vehicle.

Ethereum's price ROSE 2.69% to $2,606.26 following the announcement, reflecting bullish market sentiment. The initiative leverages a partnership with Dialectic, the crypto investment firm founded by Ryan Zurrer, to target 8-14% yields through machine learning-driven strategies on its Medici platform—significantly outperforming standard ETH staking returns.

The MOVE signals growing institutional adoption of crypto treasury strategies, with GameSquare positioning itself to generate on-chain revenue rather than passive holdings. While Ethereum forms the core of the strategy, the company hints at future diversification beyond ETH.

SharpLink Gaming's Ether Holdings Surge to $533 Million, Stock Jumps 28%

SharpLink Gaming has significantly bolstered its Ethereum reserves, purchasing 7,689 Ether for $19.2 million. This acquisition elevates the company's total holdings to 205,634 ETH, now valued at over $533 million. The announcement triggered a 28% surge in SharpLink's stock, closing at $16.29 before climbing an additional 4.36% in after-hours trading.

The Minneapolis-based firm executed the buying spree between June 28 and July 4, securing tokens at an average price of $2,501 each. Funding for these purchases came from a $64 million capital raise through share sales. All Ether holdings are currently staked, generating 322 ETH ($848,750) in rewards since June 2.

SharpLink has introduced an ETH Concentration metric to track its Ethereum exposure relative to equity structure. The move underscores a growing trend of corporations integrating cryptocurrency into treasury strategies, with Ethereum emerging as a preferred asset for institutional yield generation.

GameSquare Holdings (GAME) Stock Surges 60% Following $100M Ethereum Treasury Approval

GameSquare Holdings' stock skyrocketed nearly 60% after the company's board approved a $100 million Ethereum treasury strategy. The Nasdaq-listed gaming firm will purchase ETH in phases and collaborate with Swiss investment house Dialectic to generate on-chain yields, mirroring SharpLink Gaming's recent crypto treasury move.

The first tranche involves an underwritten sale of 8.42 million shares at $0.95 to raise $8 million. Management gained authorization to invest up to $100 million in ETH over time, with Lucid Capital Markets potentially placing an additional 1.26 million shares within 45 days. Dialectic's Medici platform aims for 8-14% annual yields through automated DeFi strategies, significantly outperforming traditional Ether staking returns.

After-hours trading extended gains by 7%, signaling strong market approval of the crypto pivot. The stock closed at $1.54 after peaking at $1.69 during the session, with 27 million shares changing hands.

Eigen Labs Cuts 25% of Workforce to Focus on EigenCloud Expansion

Eigen Labs, the Core developer behind Ethereum restaking project EigenLayer, has laid off 29 employees—approximately 25% of its workforce—as part of a strategic shift to prioritize EigenCloud. CEO Sreeram Kannan announced the restructuring via X, framing it as a move to streamline operations and accelerate global adoption of the newly launched cloud platform.

The cuts, effective July 8, 2025, will consolidate resources under remaining teams to reduce organizational complexity. Kannan praised departing staff for their contributions to EigenLayer's growth while emphasizing the company's renewed focus on scaling EigenCloud's infrastructure. The platform integrates decentralized compute resources with Ethereum's restaking mechanism, positioning it as a potential game-changer in Web3 infrastructure.