In this ongoing bearish sentiment, where traders, as well as investors, are looking for bullish news that helps the market to change sentiment amid this Dutch government’s decision over Alexey Pertsev shocked everyone. Alexey Pertsev, a key developer of the cryptocurrency mixer Tornado Cash, has been found guilty of money laundering by a Dutch judge at the s-Hertogenbosch court. The 31-year-old Russian was sentenced to 64 months in prison.
Dutch judge’s Decision over developer of Tornado Cash
Following the judgment, Pertsev was taken into custody and will remain in court partitions until a suitable prison is found for him by the public prosecutor. The court’s translated ruling, “Tornado Cash does not pose any barrier for people with criminal assets who want to launder them. That is why the court regards the defendant guilty of the money laundering activities as charged.”
The charge revealed that between July 9, 2019, and August 10, 2022, Pertsev regularly engaged in money laundering activities. It was reported that he should have at least suspected the criminal origins of the transactions processed through Tornado Cash.
The U.S. stance on Tornado Cash
Pertsev was initially arrested in August 2022 after the U.S. government blacklisted Tornado Cash. The U.S. Treasury alleged that Tornado Cash was used by the prominent and world’s biggest North Korean hacking group Lazarus, which was linked to a $625 million hack of Axie Infinity’s Ronin Network and other significant crypto thefts.
This conviction may influence the future trials of other Tornado Cash developers. Roman Storm and Roman Semenov, who also face money laundering and sanctions violation charges in the U.S., are closely watching this case. Storm is set to go on trial this September, while Semenov has not yet been arrested. Storm’s charges in the U.S. differ, as he is not accused of laundering $1.2 billion due to differences in U.S. and Dutch laws on personal responsibility in such crimes.
This landmark case highlights the increasing scrutiny and legal challenges facing developers of cryptocurrency mixers like Tornado Cash, which are often used to cover the origins of digital assets. However, most of the hackers, exploiters, and other illicit activities are happening using this method.