Developer of Tornado Cash found guilty of money laundering in the Netherlands

Developer of Tornado Cash found guilty of money laundering in landmark case
  • Alexey Pertsev, Tornado Cash developer, found guilty of laundering $1.2B in the Netherlands.
  • Despite Tornado Cash being non-custodial, Pertsev sentenced to over 5 years in prison.
  • Verdict sparks debate on accountability of open-source developers in crypto space.

Alexey Pertsev, the founder of the cryptocurrency mixing protocol Tornado Cash, has been convicted of money laundering by Dutch judges at ‘s-Hertogenbosch court on May 14.

The ruling comes after Pertsev’s arrest in the Netherlands in August 2022. It marks a pivotal moment in the intersection of cryptocurrency technology and legal accountability.

Five years and four months in prison

Despite Tornado Cash being a non-custodial crypto mixing protocol, wherein funds passing through the platform are not held or controlled by it, Pertsev has been sentenced to five years and four months in prison for allegedly laundering a staggering $1.2 billion worth of illicit assets.

Tornado Cash gained notoriety for its ability to enhance privacy and fungibility in cryptocurrency transactions by obfuscating the origin of funds. However, its association with illicit activities led to its blacklisting by the United States government, precipitating Pertsev’s legal woes.

Despite the defence’s argument that Pertsev cannot be held accountable for the actions of Tornado Cash users due to the protocol’s decentralized nature, the court’s decision underscores the increasing scrutiny faced by developers in the crypto space.

The Tornado cash developer has a 14-days appeal window

Pertsev’s legal representatives now have 14 days to appeal the court ruling, as stakeholders across the cryptocurrency ecosystem closely monitor the outcome of this landmark case.

The verdict not only has immediate ramifications for Pertsev, but also serves as a cautionary tale for developers navigating the complex legal landscape of decentralized technologies. It raises pertinent questions about the responsibility and liability of open-source code developers in the realm of decentralized finance.

While developers typically have no direct control over the use of their code, this verdict sets a precedent that could have far-reaching implications for the broader developer community.

All Dutch and English crypto news!

Ethereum ETF June launch ‘legit possibility’ as BlackRock files amended S-1

BlackRock updated its Form S-1 for its spot Ether ETF, which analysts say is a “good sign” that issuers and the SEC are working on...

Stablecoin market cap rises to 2-year highs as dominance slides to 6%: CCData

After eight consecutive months of ascent, the stablecoin market capitalization has risen to a 24-month high of $161 billion in May.

Argentina’s Milei meets top tech CEOs to boost business relations

Libertarian Argentina has “enormous possibilities” under his leadership, Milei tells Sam Altman.

US Treasury report outlines potential financial risks of NFTs

The government department outlined potential concerns with the NFT market, including terrorist financing, theft, and funding nuclear proliferation.

Beste exchanges

Koop je crypto bij Bitvavo