Tornado Cash Developer Found Guilty of Laundering $1.2 Billion in Illicit Funds

2 Mins read

Tornado Cash developer Alexey Pertsev has been found guilty of laundering $1.2 billion in illicit funds using the sanctioned crypto mixer.

Pertsev, a 31-year-old Russian living in the Netherlands, was sentenced to 64 months in prison by a Dutch court. His lawyers can appeal the decision within 14 days.

Tornado Cash Developer’s Conviction

The developer was initially imprisoned in the Netherlands in August 2022 when Tornado Cash was banned by the US government. The US Treasury claimed Tornado Cash was a critical tool for the notorious North Korean hacking group Lazarus. During Pertsev’s trial in March, prosecutors argued that he didn’t do enough to stop criminals from using Tornado Cash.

However, the defense argued that the prosecutors didn’t consider that Tornado Cash operates on open-source and automated smart contracts. Pertsev stated that it’s unfair to blame him for the actions of Tornado Cash users, who are intentionally anonymous and independent.

A similar sentiment was echoed by several industry commentators. Raphaël Bloch, co-founder of ‘The Big Whale,’ also highlighted the concern in his recent tweet in which he stated that the decision of Pertsev being found guilty of money laundering is dangerous, emphasizing that he merely developed an open-source tool.

“Tornado Cash dev Alexey Pertsev found guilty of money laundering by a Dutch court. This decision is very dangerous because Pertsev only developed an open source tool. Condemning him is like condemning a knife or car manufacturer whose users would have behaved in a wrong way.”

Furthermore, Tornado Cash is a non-custodial crypto mixing protocol, meaning that it never holds or controls the funds that are transferred via the protocol.

‘Sad Day For Privacy, Open-Source’

The outcome of this trial could set a precedent for future trials involving other Tornado Cash developers. Roman Storm and Roman Semenov, two other developers of the crypto mixer, are also accused of money laundering and violating sanctions in the US.

Meanwhile, Storm’s trial is scheduled for September, but Semenov has not been arrested yet. Former NSA whistleblower Edward Snowden had previously publicly endorsed Storm’s plea for support for his legal defense.

Blockfence’s Head of Security Research, Pablo Sabbatella, called it a “sad day for privacy, crypto, and open-source.”


Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

Source link

Related posts

Fantom Price Continues To Shine

2 Mins read
Fantom price has been such a joy to watch for investors in recent days, as a much-needed breath of fresh air continues…

Western Banks Face Major Asset Seizure in Russia Amid Gazprom Subsidiary Dispute

1 Mins read
In a significant move against western banks, a St Petersburg court has seized over $763 million of assets from Unicredit, Deutsche Bank,…

Discover How RCO Finance (RCOF) Is Revolutionizing DeFi With Its Cutting-Edge AI Trading Tool

2 Mins read
The cryptocurrency trading landscape has long been complex, with enthusiasts facing various challenges. From converting crypto to fiat to limited accessibility, crypto…



Leave a Reply

Your email address will not be published. Required fields are marked *