Tornado Cash Developer Convicted for Laundering Money
Alexey Pertsev, the creator of the popular cryptocurrency mixing protocol Tornado Cash, has been found guilty of money laundering. This verdict has raised concerns about the potential implications for open-source code developers. Pertsev was sentenced to five years and four months in prison for allegedly laundering $1.2 billion worth of illicit assets through the platform. It’s important to note that Tornado Cash is a noncustodial protocol, meaning it does not control or hold the funds that pass through it.
Despite the lack of control over the funds, Pertsev was still found guilty. This came after he was initially arrested in the Netherlands in August 2022, following the blacklisting of Tornado Cash by the United States government. Pertsev’s legal team will have 14 days to appeal the ruling.
The indictment against Pertsev suggests that he should have been aware of the illegal origins of some transactions on the platform he helped develop. There is no evidence that Pertsev actively facilitated criminal transactions, aside from contributing to the code of the crypto mixing protocol.
This case has raised concerns among open-source code developers, as it could establish a precedent for holding developers accountable for how criminals use their code. During Pertsev’s previous trial, prosecutors argued that he did not establish sufficient safeguards to prevent money laundering. It was alleged that notorious hackers, including the North Korean state-backed Lazarus Group, used the protocol for their illicit activities.
The Lazarus Group is suspected of being behind a significant hack on Axie Infinity’s Ronin Bridge, where $625 million was stolen. It is believed that they laundered over $455 million of the stolen funds through Tornado Cash, which has facilitated over $7 billion in crypto laundering since its launch in 2019, according to the U.S. Department of the Treasury’s Office of Foreign Assets Control.
Pertsev’s sentence comes shortly after the arrest of the founders of Samourai Wallet, another cryptocurrency platform. The CEO and CTO of Samourai Wallet face charges of conspiracy to commit money laundering and operating an unlicensed money transmitting business. These events highlight the United States’ stance against privacy in the cryptocurrency space, according to DeFi Education Fund legal chief Amanda Tuminelli.
17 thoughts on “Tornado Cash Developer Convicted for Laundering Money”
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Another reminder that the dark side of the crypto world is still alive and well. It’s a shame that Tornado Cash, which had the potential for good, was exploited for criminal activities.
The involvement of notorious hackers like the Lazarus Group is unsettling. It’s unfortunate that Tornado Cash was exploited for their criminal activities.
One bad apple can spoil the bunch, they say. Pertsev’s actions have now tainted the reputation of all open-source code developers. It’s unfortunate but necessary for the sake of accountability.
If Pertsev didn’t actively facilitate criminal transactions, should he be held responsible? Seems like a tough call. This case definitely raises questions about the legal implications surrounding code developers.
The fact that Pertsev was found guilty even though Tornado Cash doesn’t control the funds is truly concerning.
I can’t believe Pertsev got sentenced to prison! The punishment seems so severe for a noncustodial protocol developer.
Just when you think the crypto space is gaining legitimacy, news like this comes along. It’s a major setback for those who believe in the potential of decentralized protocols.
The arrest of the Samourai Wallet founders and now Pertsev’s conviction… It’s clear that the U.S. government is cracking down on privacy in crypto. Is this the end of anonymity?
Pertsev’s sentence and the arrest of Samourai Wallet’s founders indicate the United States’ strong stance against privacy in the cryptocurrency space.
This is a huge blow to the cryptocurrency community 😔💔 It’s disheartening to see someone who contributed to the development of a popular protocol get convicted for money laundering.
Wow, just wow 😮 The fact that notorious hackers like the Lazarus Group used Tornado Cash for their illicit activities is mind-boggling. How did the protocol not have better safeguards against this?
Sending support to Pertsev and the entire crypto community as they navigate these challenging times. Stay strong!
It’s disheartening to hear that Pertsev’s legal team will have to appeal. I hope they can find a way to overturn the ruling.
I’m sorry, but how does one even launder over $7 billion in cryptocurrency without anyone noticing? This whole case reeks of negligence and lack of oversight.
The prosecutors’ argument that Pertsev didn’t establish sufficient safeguards is quite vague. How can developers predict every possible misuse of their code?
The fact that Tornado Cash facilitated over $7 billion in crypto laundering is mind-blowing. How was this not detected sooner? It raises serious doubts about the security and integrity of the platform.
Another day, another reminder that even in the crypto world, crime doesn’t pay. Sad to see another developer involved in illicit activities. Not a good look for the industry at all.