- Alexey Pertsev, the developer behind Tornado Cash, has been convicted of money laundering by a Dutch court.
- The prosecution argued that Pertsev should have had suspicions about the illicit origins of transactions on the Tornado Cash platform.
- The outcome of Pertsev’s trial could have implications for the pending trials of other Tornado Cash developers.
Developer of Tornado Cash, Alexey Pertsev, found guilty in a money laundering case, raising questions about the future of other developers involved in the project.
Pertsev’s Arrest and Conviction
Alexey Pertsev was detained in the Netherlands in August 2022 when Tornado Cash was blacklisted by the U.S. government. The U.S. Treasury accused Tornado Cash of being a crucial tool for the North Korean hacking group Lazarus, linked to major crypto thefts. The Dutch court found Pertsev guilty of engaging in a pattern of money laundering between July 9, 2019, and August 10, 2022.
Implications for Other Tornado Cash Developers
Other developers of Tornado Cash, Roman Storm and Roman Semenov, are facing allegations of money laundering and sanctions violations in the United States. Storm is scheduled to stand trial in September, while Semenov has not yet been apprehended. The outcome of Pertsev’s trial could set a precedent for their cases.
Storm’s Defense Against DOJ Charges
In late March, Storm submitted a motion to dismiss all three charges against him, arguing that he did not operate a money laundering business and did not violate the International Emergency Economic Powers Act. His attorneys contended that Tornado Cash is not a custodial mixing service and does not meet the definition of a “financial institution.” However, the US Department of Justice rejected Storm’s motion.
Conclusion
The conviction of Pertsev marks a significant development in the ongoing scrutiny of cryptocurrency platforms and their potential role in facilitating illicit activities. The outcomes of the upcoming trials of other Tornado Cash developers will further shape the legal landscape for crypto developers and platforms.
