Alexey Pertsev, a Tornado Cash co-creator, was denied bail for the third time. He will spend the rest of the year behind bars as his legal team prepares an appeal against the money laundering charges.
He was also denied access to a computer to prepare for his appeal. The court said that offering him that privilege would bypass its security protocols. Moreover, it has previously claimed that approving Pertsev’s request for supervised release would not make sense as he poses a flight risk.
A court in the Netherlands found him guilty of money laundering in May. These charges stem from Pertsev’s role in creating, managing, and profiting from the crypto mixer Tornado Cash. The mixer is the first US OFAC-sanctioned software due to its ability to obscure fund flows, thereby violating anti-money laundering regulations.
The platform has allowed numerous users to integrate proceeds from criminal enterprises into the global financial system. Pertsev has profited off the mixing service by collecting fees. Thus, he was held responsible for operating it, with the court accusing him of laundering $1.2 billion for his users.
Pertsev’s lawyer, Judith de Boer, described the denial of his bail request as “unacceptable.” She added, “This unprecedented case addresses when a software developer can be criminally liable for third-party misuse.”
Many in the crypto ecosystem echo that feeling as Pertsev is being punished for writing code that third parties have used for nefarious purposes. Inherently, the platform’s existence does not constitute a crime. Thus, they feel the Tornado Cash creator is innocent.
An X account dedicated to advocating the freeing of Pertsev and another Tornado Cash creator, Roman Storm, posted, “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 do not belong in jail for the actions of third parties.”
