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A Developer of Ethereum Mixer Tornado Cash Found Guilty of Money Laundering
Alexey Pertsev, the developer of the popular Ethereum mixer Tornado Cash, has been convicted of money laundering by a Dutch court. As a result, he has been sentenced to 64 months in prison for his involvement in illicit financial activities.
Criminal Intentions
During the court proceedings at s-Hertogenbosch, the judge characterized Tornado Cash as a tool primarily used by criminals for money laundering purposes. The judge emphasized that the platform enables criminal users to easily engage in illicit financial activities without being detected. Consequently, Pertsev was held accountable for laundering a staggering $1.2 billion in illegal funds through Tornado Cash.
According to court records spanning from July 9, 2019, to August 10, 2022, Pertsev was found to have consistently engaged in money laundering activities using Tornado Cash. The court criticized Pertsev for failing to exercise due diligence and caution in verifying the legitimacy of transactions processed through the platform.
Pertsev’s legal representatives have been granted a 14-day window to challenge the court’s ruling and seek relief for their client.
Understanding Crypto Coin Mixers
Crypto coin mixers like Tornado Cash are designed to obfuscate the trail of transactions, making it challenging to trace the flow of funds. While these tools have been exploited by hackers and criminals for money laundering purposes, it is essential to note that they serve legitimate privacy and security functions for users as well. Tornado Cash, known for its widespread adoption, is just one among several similar platforms offering anonymity and privacy features to users.
In a notable turn of events, Pertsev had previously faced legal repercussions in 2022 when Tornado Cash was blacklisted by the U.S. Treasury Department, leading to his incarceration in the Netherlands. His co-founder, Roman Storm, also encountered legal troubles in 2023, facing allegations of money laundering by U.S. authorities.
Notably, the high-profile support from whistleblower Edward Snowden for the Tornado Cash developers brought international attention to the case. As Roman Storm’s trial looms in September, the legal saga surrounding Tornado Cash continues to unfold.
Editor’s note: This is a developing story and will be updated.
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