Alexey Pertsev, a key developer behind the controversial crypto-mixing platform Tornado Cash, has been granted conditional release from pretrial detention in the Netherlands after spending nine months in custody.
The release, effective 7 February 2025, comes as Pertsev prepares for his appeal against the charges he faces.
While Pertsev will now be allowed to continue his legal fight outside of prison, his freedom is far from unrestricted.
The court has imposed electronic monitoring as a condition for his release.
Pertsev himself shared the news on social media, stating,
“I will be free! It is not real freedom, but it is better than prison.”
He expressed a commitment to use this time to work on his appeal, adding,
“This will give me a chance to work on my appeal and fight for justice.”
The case has garnered significant attention, both in the crypto community and beyond.
Pertsev faces accusations of facilitating the laundering of approximately $1.2 billion in cryptocurrency through Tornado Cash between 2019 and 2022.
Tornado Cash, which was designed to offer privacy in crypto transactions, has been scrutinised for its alleged use in illegal activities.
The court has maintained that Pertsev and his team should have implemented stricter controls to prevent such misuse of the protocol.
Despite this, Pertsev has argued that he should not be held responsible for the criminal actions of third parties who used Tornado Cash.
This defence, however, was rejected by the court, which sentenced him to 64 months in prison.
A Dutch judge found Tornado Cash developer Alexey Pertsev, who was first jailed in the Netherlands in August 2022, guilty of money laundering. In March, Dutch prosecutors asked for a 64-month prison sentence for Alexey Pertsev for laundering $1.2 billion worth of cryptocurrency.…
— Wu Blockchain (@WuBlockchain) May 14, 2024Sponsored Business Content
His legal team is now preparing to challenge the conviction in the upcoming appeal.
While Pertsev continues his fight in the Netherlands, his colleague Roman Storm, co-founder of Tornado Cash, faces his own legal challenges in the United States.
Roman Storm
Storm, who is currently out on a $2 million bond, is set to go to trial in April.
Like Pertsev, Storm is accused of facilitating the laundering of over $1 billion through the platform.
Tornado Cash has also faced significant legal hurdles in the US.
In late 2024, a federal appeals court ruled that the US Treasury Department had overstepped by sanctioning Tornado Cash.
The court determined that the platform's smart contracts, which are immutable lines of code, cannot be classified as "property" under existing law.
This ruling was seen as a win for privacy technologies, which have faced growing regulatory scrutiny in recent years.
However, legal experts caution that this ruling does not clear Tornado Cash or its founders of wrongdoing.
Bill Hughes, an attorney for ConsenSys, noted,
“The ruling doesn’t absolve Tornado Cash of being a service. It only establishes that the smart contracts weren’t property. The Department of Justice (DOJ) still alleges Storm knowingly operated a platform in violation of sanctions.”
As Pertsev and Storm continue their legal battles, the future of Tornado Cash is up in the air.
The case has sparked ongoing discussions about privacy, regulation, and how much responsibility crypto developers should bear for how their technology is used.
BNB Chain recently unveiled insights shedding light on its DappBay platform. At the forefront of the Red Alarm list is Genesis Universe, an NFT-based game on BNB Smart Chain. Despite its play-to-earn mechanism, caution is advised due to its presence on the Red Alarm list, highlighting operational uncertainties.
JoyFinancial technology solution providers suggest that future collaborations between banks and tokenised platforms may further fuel the development of the virtual asset industry.
BrianThe Santa Catarina Judiciary in Brazil has frozen $5.6 million in assets linked to an NFT pyramid scheme. Victims, reporting losses over $3.9 million, were enticed with promises of up to 20% monthly returns. Operation 'Cripto X' revealed the scheme's depth, prompting civil and criminal actions against eight individuals and 14 companies. The freezing of assets aims to compensate victims as the scheme collapsed due to liquidity issues and challenges in repatriating funds.
JixuCircle and SBI unite forces to drive USDC's digital currency revolution in Japan, navigating regulatory landscapes for widespread adoption and marking a milestone in the global financial shift.
Hui XinAzuki DAO transforms into memecoin "Bean" with $10 million funding for integration into the Blast ecosystem. The 1 billion token supply includes a 50% distribution through an NFT airdrop to the Azuki DAO community. Legal disputes with Zagabond over the "Elementals" series are resolved as Azuki DAO drops the proposed lawsuit, marking a pivotal moment for the Azuki community. Future plans and financing details for Bean's memecoin project are anticipated.
JixuOpenSea faces criticism for promoting the dormant Fatzuki NFT collection, sparking concerns about the platform's due diligence. The controversy, marked by a sudden surge in Fatzuki's value and echoes of past scandals, raises questions about OpenSea's motives, especially amid recent staff layoffs and the project's questionable activity since July 2023.
JixuWilfred Bonse, a politician, has been arrested for embezzling over 200 million naira from Patricia Technologies' crypto wallet, collaborating with hackers to launder funds. Despite setbacks, Patricia Technologies aims to repay customers after converting assets into Patricia Token, highlighting Nigeria's crypto awareness at 99%.
JixuThe Securities and Exchange Commission (SEC) of Thailand has implemented a trading and asset deposit halt for Zipmex, effective from 25 November, 1pm local time. This decision aligns with local regulations to ensure compliance. The suspension instructs customers seeking fund or asset withdrawals during this period to directly contact the exchange.
JoyGlobal collaboration strengthens AI security with comprehensive guidelines for development and deployment.
Hui XinTron, a fast-growing cryptocurrency network, has overtaken Bitcoin as a platform for crypto transfers associated with groups designated as terror organisations by Israel, the United States, and other countries.
Joy
