- Tornado Cash developer Alexey Pertsev has been indicted for allegedly laundering over $1.2 billion
- Details of the allegations against him emerged on Tuesday, sparking more debate within the cryptocurrency community
- Tornado Cash is still being used to launder criminal proceeds today
Alexey Pertsev, the developer behind Tornado Cash, is set to face trial after Dutch prosecutors revealed an indictment accusing him of laundering over $1.2 billion in dirty money. The details emerged on Tuesday, shedding light on a case that has sparked significant debate within the cryptocurrency community. Pertsev was arrested in August 2022 after authorities in the US sanctioned the mixing service, with three individuals now accused of aiding the washing of stolen money through the service.
36 Incidents Highlighted
The indictment was seen by DL News, which reported that Pertsev stands accused of habitual money laundering activities, with prosecutors alleging his involvement in illicit transactions through Tornado Cash, the mixing service favored by bad actors until it was sanctioned around 18 months ago.
Pertsev was arrested by Dutch police two days after the US sanctioned Tornado Cash but has consistently denied any wrongdoing, with his lawyer, Keith Cheng, emphasizing the lack of specific charges in the prosecutors’ accusations.
The indictment outlines 36 transactions deemed suspicious by prosecutors, including a significant sum of over 175 ETH originating from the hack on Ronin Bridge which was compromised by North Korean cyber group Lazarus for $625 million. Other decentralized protocols like Harmony and Nomad Bridge are also mentioned in the indictment.
Pertsev Case Could Have Consequences
The case against Pertsev holds significant implications for the broader cryptocurrency landscape, with many viewing it as a legal battleground over the role of developers in ensuring the legality of their projects.
Supporters argue that coding itself should not be equated with criminal activity, sparking a debate over the intersection of technology and legal accountability. It doesn’t help that Tornado Cash is still being used to launder illegally obtained funds to this day.
While Dutch prosecutors acknowledge that cryptocurrency mixing services are not inherently illegal, they underscore the importance of holding individuals accountable for concealing the origins of criminal funds.
