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

Coingapestaff
May 14, 2024
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Tornado Cash Developer Alexey Pertsev Set To Be Released; TORN Price Skyrockets

Highlights

  • Alexey Pertsev, the developer of crypto mixer Tornado Cash, was found guilty of money laundering.
  • Pertsev has been incarcerated for his involvement in crypto money laundering of $1.2 billion.
  • The developer is slated to serve a prison term of 64 months by a Dutch court.

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.

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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

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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

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
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.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.