Developer Found Guilty: Impact on Altcoin Price and Market Performance (Coin Name, Symbol)

• Developer of Tornado Cash, Alexey Pertsev, found guilty of laundering $1.2 billion in illegal funds by a Dutch court.
• Pertsev, a 31-year-old resident of the Netherlands, has been sentenced to 64 months in prison.
• The news has negatively impacted the price of the associated altcoin, causing TORN price to start falling.

Alexey Pertsev, the developer of Tornado Cash, has been found guilty of money laundering by a Dutch court, leading to a drop in the price of the associated altcoin, TORN.

Court Finds Tornado Cash Developer Guilty

Pertsev was first imprisoned in the Netherlands in August 2022 after Tornado Cash was banned by the US government. The US Treasury claimed that Tornado Cash was a critical tool for the infamous North Korean hacking group, Lazarus. During Pertsev’s trial in March, prosecutors argued that he did not make enough effort to prevent criminals from using Tornado Cash. However, the defense pointed out that prosecutors did not consider that Tornado Cash operates on open-source and automatic smart contracts. Pertsev maintained that Tornado Cash is anonymous and independent, arguing that it is unfair to blame him for the actions of Tornado Cash users.

What Does the Conviction Mean for the Sector?

Several industry commentators echoed similar sentiments. Raphaël Bloch, co-founder of ‘The Big Whale’, highlighted in his latest tweet that finding Pertsev guilty of money laundering is dangerous. Bloch emphasized that Pertsev only developed an open-source tool and likened convicting him to convicting a knife or car manufacturer for the wrongful actions of their users. Furthermore, Tornado Cash is a crypto mixing protocol that is not under surveillance, meaning it never holds or controls the funds transferred through the protocol.

A ‘Sad Day for Privacy and Open Source’

The outcome of this case could set a precedent for future cases involving other Tornado Cash developers. The other two developers of the crypto mixer, Roman Storm and Roman Semenov, are also accused of money laundering and violating sanctions in the US. Storm’s trial will take place in September, but Semenov is not yet in custody. Former NSA whistleblower Edward Snowden previously publicly supported Storm’s request for legal defense. Pablo Sabbatella, Head of Security Research at Blockfence, described this as a “sad day for privacy, crypto, and open source”.

Altcoin Price Begins to Fall

The conviction news negatively impacted the price of the altcoin. The TORN price fell from its daily high of $2.90 to $2.72. At the time of writing, the token was trading at $2.75, a daily loss of 5.4%.

Conclusion

The conviction of Tornado Cash developer Alexey Pertsev has sent ripples through the crypto industry, leading to a drop in the price of the associated altcoin, TORN. The case has sparked debate about the responsibility of developers for the use of their open-source tools, and could set a precedent for future legal actions in the crypto space.