Tornado Cash Dev Pertsev Needs Money For Legal Fight
Alexey Pertsev, the co-founder and developer of Tornado Cash, a popular decentralized cryptocurrency mixing service, is seeking an additional $750,000 to $1 million to cover legal expenses for his appeal, according to a recent post from the support account for Alexey Pertsev and Roman Storm, another co-founder of Tornado Cash.
Pertsev said he’s fighting for privacy rights and the future of software developers.
The dev was arrested in Amsterdam in August 2022, shortly after the U.S. Treasury blacklisted Tornado Cash, and faced charges of facilitating money laundering through the platform.
The Slow Burn
In May this year, the developer was sentenced to 64 months, or over 5 years, in prison after being found guilty of money laundering and denied bail.
The ruling has sparked community outrage as many believe holding developers liable for the actions of users, here Tornado Cash’s users, could deter contributions to decentralized projects and stifle tech advancement.
To support Pertsev’s ongoing appeal, several crypto community members have donated around 654 Ether (ETH), approximately $2.3 million, through JusticeDAO. The developer is now seeking more funding to continue his legal appeal.
“This fight isn’t just about me; it’s about our privacy rights and the future of software developers,” he stated.
The case has raised questions about the accountability of software developers for the misuse of their creations since prosecutors claimed that Pertsev and his fellow developers created a crime-enabled tool and did not adopt adequate safeguards to prevent its misuse.
Widely Used Tech
Pertsev, as well as many cryptocurrency users, argue that Tornado Cash operates autonomously and is not under his direct control. The community views the case as an overreach by government authorities.
Like Pertsev, Roman Storm was arrested in the U.S. last August. Storm is accused of conspiracy to commit money laundering and violations of sanctions. He is awaiting trial, which is expected to address similar issues as Pertsev’s case.
The third co-founder, Roman Semenov, is still at large. Semenov is believed to be in Dubai, though his exact location is uncertain. Also, the U.S. may face challenges in extraditing him due to the legal framework between the UAE and the U.S.
Tornado Cash…
Tornado Cash’s privacy-enhancing features have made it an attractive tool for criminals seeking to obscure the origins of their funds. This has drawn increasing legal scrutiny and action from authorities.
The tool has been accused of facilitating the laundering of over $1 billion in criminal proceeds. The U.S. Treasury has sanctioned Tornado Cash due to its association with criminal groups, particularly the Lazarus Group, the notorious hacking organization allegedly based in North Korea.
Despite the sanction, Tornado Cash’s operations remain intact. Transaction volumes dropped after sanctions, but there are still a number of small activities, a report from the Federal Reserve Bank of New York revealed.
The recovery of the small pools suggests that retail users are engaging with the platform.
Experts said that while sanctions have been effective against centralized entities so far, this level of effectiveness may not equal in cases involving decentralized entities. However, big groups like Lazarus are reportedly moving to other tools as laundering large amounts of funds on Tornado Cash is now difficult.
For smaller activities, there are still risks associated with Tornado Cash’s use. Cryptocurrency exchange OKX recently issued a strong warning about the potential consequences of interacting with sanctioned entities like Tornado Cash and Garantex.
OKX said it would suspend any accounts with deposits or withdrawals involving these entities as part of its compliance measures.The exchange also noted its inability to serve sanctioned individuals or entities.
Some users, particularly from CIS countries, have reported account blocks and fund losses due to OKX’s strict policies.
