Alexey Pertsev, the developer of Tornado Cash, has filed an appeal with the s-Hertogenbosch court of appeal after being convicted of money laundering. He received a 64-month prison sentence but has the option to request home confinement while awaiting the appeal trial. The appeal process is expected to take several months, although it is uncertain if the appeal has been granted. Following the guilty verdict, Pertsev was taken into custody immediately to serve his sentence. The court determined that Tornado Cash did not deter individuals with criminal assets who wished to launder them. Pertsev was arrested in the Netherlands in August 2022 when Tornado Cash was blacklisted by the U.S. government due to its association with the North Korean hacking group Lazarus, known for significant crypto thefts, including the $625 million hack of Axie Infinity’s Ronin Network.
Roman Storm and Roman Semenov, also involved in developing Tornado Cash, are facing money laundering and sanctions violation charges in the United States. Storm is set to stand trial in September, while Semenov remains at large. The US Treasury added Tornado Cash to its Specially Designated Nationals list, prohibiting Americans from using the service. In response to the continued crackdown on crypto-mixing services, democratic representatives in the US have introduced the US Blockchain Integrity Act, which aims to disrupt illicit fund flows and enhance transparency by banning financial institutions, cryptocurrency exchanges, and registered money service businesses from accepting funds processed through a mixer. Non-compliance could result in civil penalties of up to $100,000. The legislation comes after the conviction of Roman Sterlingov, the founder of Bitcoin Fog, a $400 million crypto-mixing service, for money laundering and other charges.
The US Department of Justice rejected Roman Storm’s motion to dismiss charges against him, stating that Tornado Cash was established in 2019 as a mixer with a website, user interface, smart contracts, and a network of “relayers.” Alexey Pertsev was accused of laundering $1.2 billion through Tornado Cash and had all his assets, including cars and crypto, seized by the police. The prosecution claimed that Tornado Cash facilitated money laundering activities, leading to Pertsev’s conviction. However, Pertsev has appealed the verdict and may be granted home confinement while awaiting the appeal trial. The ongoing crackdown on crypto-mixing services by the US government has resulted in increased scrutiny on developers and individuals involved in such platforms. The involvement of Tornado Cash in facilitating criminal activities has led to legal actions against its developers and founders, highlighting the risks associated with cryptocurrency mixers and the enforcement of regulations surrounding their use.
