A Dutch court crypto- found Alexey Pertsev, developer of mixing platform Tornado Cash, guilty of laundering $1.2 billion in illegal assets. Pertsev, a 31-year-old Russian citizen, faces a significant prison sentence of five years following his guilty verdict on May 14.
Details of the Pertsev Case
Tornado Cash Alexey Pertsev, the mastermind behind the cryptocurrency mixing protocol, has been detained in the Netherlands since August 2022 after Tornado Cash was blacklisted by the United States government is located.
The court’s decision was based on accusations that Pertsev did not properly prevent criminals from using Tornado Cash for money laundering activities.
🚨TORNADO CASH DEVELOPER FOUND GUILTY OF $1.2B MONEY-LAUNDERING – WHAT WE KNOW🚨
NEWS CONTINUES BELOW– A Dutch court has officially found Tornado Cash developer, Alexey Pertsev, guilty of laundering a staggering $1.2 billion via the infamous crypto-mixing platform.
– Pertsev is a Russian national,… https://t.co/h50xceUpR5 pic.twitter.com/0Ec0e9wB63
NEWS CONTINUES BELOW— BSCN (@BSCNews) May 14, 2024
During the court hearing, prosecutors argued that Pertsev did not take adequate precautions to prevent criminals from using Tornado Cash, despite its decentralized design. In response, the defense argued that the decentralized and automated nature of the platform exempted Pertsev from accountability for the actions of anonymous users.
Meanwhile, the three-judge panel found Pertsev guilty of laundering $1.2 billion in money and is expected to sentence him to five years in prison. Their lawyers will have 14 days to appeal the decision.
Functionality of Tornado Cash
As Koinfinans.com reported, Tornado Cash functions as a decentralized protocol on the Ethereum blockchain and is designed to increase transaction privacy by blurring transaction histories. Despite its technological purpose, prosecutors argue that legal responsibilities outweigh technological concepts, particularly to prevent platforms from aiding criminal activity.
Meanwhile, prosecutor Martine Boerlage argued that Tornado Cash operated in a manner structured similarly to a company, despite allegations of leaderless management.
However, the US Office of Foreign Assets Control reported that Tornado Cash was used to launder over $7 billion in cryptocurrency obtained from hacks and robberies. North Korean cybercriminal organization Lazarus Group is one of the primary perpetrators of the record $625 million Axie Infinity Ronin Bridge attack in March 2022.
Community Support
The guilty verdict against Alexey Pertsev attracted support and attention from the crypto community, with advocacy efforts aimed at covering his legal fees. Meanwhile, another Tornado Cash developer, Roman Storm, is also facing similar charges in the United States, and his trial is scheduled for September 23, as previously reported by Coinpedia news.
