Dutch Prosecutors Recommend 64-Month Jail Time For Tornado Cash Developer

Published: Mar 27, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

Dutch prosecutors have recommended a 64-month jail sentence for Alexey Pertsev, a developer of Tornado Cash. The two-day trial, held in the ‘S-Hertogenbosch court in the Netherlands on Tuesday and Wednesday, centered on accusations that Pertsev had engaged in money laundering activities.

Key points:

  • Prosecutors accuse Alexey Pertsev of laundering $1.2 billion worth of crypto through Tornado Cash.
  • The trial could establish a precedent for the treatment of developers in other courts.
  • Pertsev has been in jail in the Netherlands since August 2022, shortly after the United States Treasury blacklisted Tornado Cash.
  • Two other developers, Roman Storm and Roman Semenov, face similar allegations in the U.S.
  • The judge is set to deliver the verdict on May 14.

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Dutch prosecutors shared an indictment with CoinDesk ahead of the trial, alleging that Pertsev developed a habit of money laundering through Tornado Cash between July 9, 2019, and August 10, 2022. The indictment claims that Pertsev facilitated the laundering of $1.2 billion worth of cryptocurrency during this period.

Pertsev’s arrest came after U.S. blacklisted Tornado Cash

Pertsev’s arrest in August 2022 came shortly after the U.S. Treasury Department blacklisted Tornado Cash. The department claimed that the platform served as a crucial instrument for the Lazarus Group, a North Korean hacking group associated with the $625 million hack of Axie Infinity’s Ronin Network, among other illicit activities.

The outcome of the trial could significantly impact cryptocurrency developers by setting a precedent for their treatment in global courts. The case has drawn attention from the global crypto community, with many concerned about the potential effect on innovation and the rights of developers.

Read more: Judge Allows SEC’s Lawsuit Against Coinbase To Proceed, Dismisses Exchange’s Motion

Pertsev is not the only Tornado Cash developer facing legal troubles. Two additional developers, Roman Storm and Roman Semenov, are also under investigation for alleged involvement in money laundering and sanctions violations within the United States.

Storm is scheduled to go on trial in September, while Semenov has not yet been arrested by U.S. authorities. The judge presiding over the trial is expected to deliver the verdict on May 14. .

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.