Tornado Cash Developer Released from Prison Under Electronic Monitoring

Alexey Pertsev, the developer of Tornado Cash, a crypto-mixing protocol, has been released from a Dutch prison under electronic monitoring as he continues to appeal his conviction for money laundering.

Pertsev, a 31-year-old Russian national, was sentenced to 64 months in prison last May. He announced his release in a post on X, stating,

“Dear Friends, on Friday 7 February at 10 am I will be free! It is not real freedom, but it is better than prison.”

His release follows multiple denied bail requests and ongoing debates over the legal treatment of privacy-focused crypto developers. A Dutch court suspended his pretrial detention, allowing him to focus on appealing his conviction. Pertsev was released on the condition that he be electronically monitored.

Financial Support

Pertsev expressed gratitude to his supporters, stating that his house arrest was made possible by donations that covered his lawyers’ fees. He emphasized that his fight is not over yet and that he still needs financial support to achieve a final and confident victory.

Background of the Case

At Pertsev’s two-day trial, he defended his role in developing Tornado Cash, explaining that the technology, especially smart contracts, made it impossible for him to trace the users who employed the service to anonymize their transactions.

The prosecution countered, asserting that Tornado Cash’s code facilitated money laundering by enabling the North Korean-linked Lazarus Group to transfer stolen funds across various wallets, effectively concealing their origins.

Pertsev was found guilty of failing to prevent illicit transactions through Tornado Cash, a crypto-mixing protocol sanctioned by the U.S. Treasury for allegedly enabling over $7 billion in money laundering.

Tips for Crypto Developers and Investors

As the case of Alexey Pertsev highlights the importance of regulatory compliance in the crypto industry, here are some key takeaways:

  • Ensure that your crypto project complies with relevant anti-money laundering (AML) and know-your-customer (KYC) regulations.
  • Implement robust security measures to prevent illicit transactions and protect user data.
  • Stay informed about regulatory developments and updates in the crypto industry.

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