Alexey Pertsev, the developer of Tornado Cash, who was recently sentenced by a Dutch court to five years and four months in prison on charges of money laundering, faces further imprisonment.
Despite an appeal by his legal team to the Court of Appeals in s-Hertogenbosch, Pertsev’ s bid for bail was rejected, prolonging his stay in prison.
As DL News reported, the denial of bail came as a surprise to Pertsev’s defense attorney, who had hoped that his client could await trial under more favorable conditions, including access to the Internet and necessary legal resources.
However, those hopes were dashed when the court upheld the decision to keep Pertsev in custody, denying him even the use of a computer to prepare for trial.
Cryptocurrency veterans criticize court decision
Cryptocurrency veterans have vociferously criticized the court’s decision, especially from supporters like JusticeDAO, which is raising funds for Pertsev’s legal defense.
“Alexei will spend the next year in prison while his legal team prepares for an appeal hearing. This is a gross miscarriage of justice. Programmers should not be imprisoned for the actions of others.” – laments an anonymous account affiliated with the organization.
Pertsev is one of three Tornado Cash developers targeted for their role in developing a cryptocurrency mixing protocol.
Proponents claim that Tornado Cash enhances privacy on the Ethereum blockchain, while prosecutors allege that the creators knowingly helped or failed to prevent illegal organizations from laundering stolen funds through their platform.
“This unprecedented case deals with situations in which a software developer can be held criminally liable for misuse by a third party,” – said his defense attorney Judith de Boer.
Pertsev was arrested in the Netherlands in August 2022, when Tornado Cash was blacklisted by the US government. At the time, the US Treasury Department accused Tornado Cash of being a key tool for the North Korean hacking group Lazarus.
The group has been linked to major cryptocurrency thefts, including the $625 million hack of Axie Infinity’s Ronin Network. The outcome of Pertsev’s trial could have implications for the pending trials of other Tornado Cash developers.
Roman Storm and Roman Semenov, who also played a role in the development of the cryptocurrency mixer, face charges of money laundering and violating U.S. sanctions . Storm’s trial is expected to take place in September, while Semenov has not yet been detained.
Storm was arrested last year after Tornado Cash was re-added to the list of individuals subject to US sanctions. It is worth noting that in the United States, Storm is not accused of direct responsibility for the $1.2 billion laundering.
Meanwhile, earlier this year, Democratic representatives introduced the U.S. Blockchain Integrity Act, which aims to crack down on cryptocurrency mixers.
The proposed legislation aims to disrupt the flow of illicit funds and promote transparency by prohibiting financial institutions, cryptocurrency exchanges and registered money service companies from accepting funds processed through a mixer. Failure to comply will result in civil penalties of up to $100,000.
