Dutch Court Rejects Bail Request for Tornado Cash Developer Alexey Pertsev During Ongoing Appeal Process

Alexey Pertsev, the developer of Tornado Cash recently sentenced to five years and four months in prison on money laundering charges by a Dutch court, remains in custody.

Although his legal team has submitted an appeal to the s-Hertogenbosch Court of Appeal, Pertsev’s request for bail has been denied, extending his time in detention.

The bail denial, as reported by DL News, surprised Pertsev’s defense attorney, who had anticipated that his client could await trial under more favorable conditions, including internet access and essential legal resources.

However, these expectations were thwarted when the court maintained the decision to keep Pertsev in custody, denying him even the ability to use a computer for trial preparation.

Crypto Veterans Criticize Court’s Ruling

Crypto veterans have voiced strong criticism of the court’s ruling, particularly from advocates like JusticeDAO, which is fundraising for Pertsev’s legal defense.

“Alexey will spend the next year in jail while his legal team prepares for the appeal hearing. This is a gross miscarriage of justice. Developers should not be incarcerated for the actions of others,” an anonymous account linked to the organization expressed.

Pertsev is one of three developers of Tornado Cash targeted for their involvement in creating the cryptocurrency mixing protocol.

Supporters contend that Tornado Cash improves privacy on the Ethereum blockchain, while prosecutors claim that the developers either knowingly facilitated or failed to prevent illicit entities from laundering stolen funds via their platform.

“This unprecedented case addresses when a software developer can be criminally liable for third-party misuse,” his defense attorney Judith de Boer stated.

Pertsev Was Arrested in 2022

Pertsev was apprehended in the Netherlands in August 2022 when Tornado Cash was placed on the U.S. government’s blacklist.

At that time, the U.S. Treasury accused Tornado Cash of being a vital tool for the North Korean hacking group Lazarus.

This group has been associated with significant crypto thefts, including the $625 million hack of Axie Infinity’s Ronin Network.

The outcome of Pertsev’s trial could have repercussions for the ongoing trials of other Tornado Cash developers.

Roman Storm and Roman Semenov, who also contributed to the development of the crypto mixer, are facing charges of money laundering and sanctions violations in the United States.

Storm is set to go to trial in September, while Semenov has yet to be apprehended.

Storm was arrested last year after Tornado Cash was once again included on the U.S. sanctions watchlist.

It is important to note that, in the United States, Storm is not accused of being directly responsible for the laundering of $1.2 billion.

Meanwhile, earlier this year, Democratic representatives introduced the US Blockchain Integrity Act, which seeks to combat cryptocurrency mixers.

The proposed legislation aims to disrupt the flow of illicit funds and enhance transparency by prohibiting financial institutions, cryptocurrency exchanges, and registered money service businesses from accepting funds processed through a mixer.

Noncompliance would result in civil penalties of up to $100,000.

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