Tornado Cash Developer Gets 64 Months In Prison For $1.2B Laundering

Alexey Pertsev, the developer of Tornado Cash, has been handed a prison sentence of 64 months by a Dutch court. The ruling is in response to his involvement in money laundering activities totaling $1.2 billion. The verdict was delivered at the s-Hertogenbosch court on Tuesday, May 14.

Alexey Pertsev Sentenced To 64 Months Prison

The above-mentioned judgement against the Tornado Cash developer marks a decisive moment in the legal battle against illicit financial practices within the crypto space. Moreover, Pertsev’s indictment outlined a pattern of money laundering spanning from July 9, 2019, to August 10, 2022. During this period, he allegedly facilitated transactions with criminal origins through the Tornado Cash platform.

In addition, the court deemed Pertsev complicit in the illegal activities. It also emphasized that he should have been aware of the illicit nature of the transactions. Furthermore, this ruling sets a precedent that could impact future trials involving other Tornado Cash developers.

Roman Storm and Roman Semenov, co-developers of the crypto mixer, are also facing accusations of money laundering and sanctions violations in the United States. Storm was apprehended last year following Tornado Cash’s addition to the U.S. sanctions watchlist. Moreover, he is scheduled for trial in September 2024. However, Semenov remains at large, with no reported arrests at present.

Also Read: China Cracks Down On $300M Crypto Exchange Fraud, Arrest 6

Verdict Labels Tornado Cash As A Tool For Criminals

The verdict stated, “Tornado Cash does not pose any barrier for people with criminal assets who want to launder them.” The statement poses threat to the ‘privacy’ feature that crypto community craves for. However, crypto illicit actors often leverage such tools for their advantage. For instance, the Poloniex hackers used the platform to launder over $53 million of Ethereum (ETH).

Moreover, the court based its decision on Tornado Cash’s lack of scrutiny against the laundering of criminal assets. The ruling added, “That is why the court regards the defendant guilty of the money laundering activities as charged.” Nonetheless, Pertsev’s legal team could file an appeal to the verdict.

Initially jailed in the Netherlands in August 2022, the developer faced repercussions after Tornado Cash was blacklisted by the U.S. government. The U.S. Treasury alleged that Tornado Cash served as a crucial tool for the North Korean hacking group, Lazarus. Furthermore, Lazarus Group’s involvement in a $625 million hack of Ronin Network, powered by Axis Infinity, and other significant crypto thefts further heightened concerns.

Also Read: Ethereum ETF Approval Odds On Edge As SEC Unveils Major Notice

✓ Share:

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.