Hotz claimed he would not settle (unless very specific things were done, which haven't been), he took donations when this was the understanding. I have seen multiple people complaining that they donated because he wasn't going to settle, they wanted to support his fight for "justice".
He settled.
Whether or not the money goes to the EFF is irrelevant.
"What if SCEA tries to settle?
Lets just say, I want the settlement terms to include OtherOS on all PS3s and an apology on the PlayStation blog for ever removing it. It'd be good PR for Sony too, lord knows they could use it. I'm also willing to accept a trade, a legit path to homebrew for knowledge of how to stop new firmwares from being decrypted."
He settled.
Whether or not the money goes to the EFF is irrelevant.
"What if SCEA tries to settle? Lets just say, I want the settlement terms to include OtherOS on all PS3s and an apology on the PlayStation blog for ever removing it. It'd be good PR for Sony too, lord knows they could use it. I'm also willing to accept a trade, a legit path to homebrew for knowledge of how to stop new firmwares from being decrypted."