Close Menu
    Blockchain

    Extended pre-trial detention for Tornado Cash creator Alexey Pertsev as legal battles and developer concerns intensify

    By No Comments2 Mins Read
    arrest, police, crime, prison, jail, imprisonment, prison cell, man, person, detention, prisoner

    30s Summary

    Alexey Pertsev, creator of cryptocurrency mixing protocol Tornado Cash, remains in custody as his pre-trial detention is extended. Pertsev is accused of money laundering. His predicament has raised concerns for other developers, especially those creating privacy-enhancing techniques. Despite sanctions in 2022, Tornado Cash is operational, and usage has increased. The service handled $1.8 billion in the first half of 2024. This creates legal compliance challenges for future privacy protocols. Pertsev’s trial outcomes could set a precedent for developers in the crypto privacy sector.

    Full Article

    Alexey Pertsev, who created the cryptocurrency mixing program Tornado Cash, announced his pre-trial detention has unfortunately been extended. This spells trouble for open-source code developers, especially those working on projects that enhance privacy.

    Tornado Cash’s creator is going to remain under custody while waiting for his trial to begin. Despite this setback, he remains committed to fighting for justice.

    Members of the US Democratic Party have been keeping an eye on Tornado Cash, questioning what measures are being taken about the cryptocurrency mixing service. Even though it was sanctioned in 2022, the service is still up and running. In fact, its usage has seen a rise this year, taking in $1.8 billion in the first half of 2024, a significant increase compared to 2023.

    Pertsev is currently under arrest on money laundering-related charges, even though Tornado Cash is a non-custodial cryptocurrency mixing protocol – meaning, the program doesn’t hold or control the funds that pass through it.

    However, Pertsev was found guilty of money laundering by Dutch judges, accusing him of allegedly laundering a whopping $1.2 billion. This came after Tornado Cash was blacklisted by the US government and Pertsev was first put behind bars in the Netherlands.

    During his trial, Pertsev argued that he couldn’t be blamed for the shady actions of others who used Tornado Cash. Despite his argument, the court disagreed, stating that if he really wanted to keep criminals away from misusing the program, he should have made the protocol more secure.

    The legal situation surrounding Pertsev is creating issues for developers who work on privacy-enhancing techniques, as such future privacy protocols would need to ensure they’re legally compliant. This was pointed out by Matthew Niemerg, co-founder and president of AlephZero.

    Related Posts