Alexey Pertsev, a developer associated with the cryptocurrency-mixing service Tornado Cash, is set to be released from pretrial detention on Friday, January 10, 2025, under electronic monitoring. He continues to contest money laundering charges in the Netherlands. His release comes ahead of his appeal against a 64-month prison sentence handed down in May 2024. Tornado Cash, a decentralized coin-mixing service, allows users to obscure Ethereum transactions by blending them with others. Authorities have accused the platform of facilitating illicit financial activities, including money laundering. Tornado Cash Sanctions Overturned—Will This Help Pertsev’s Appeal? In a post on social media X, he confirmed his release, stating that returning home would give him “a chance to work on my appeal and fight for justice.” He acknowledged that electronic monitoring is not full freedom but said it is “better than prison.” Dear Friends, on Friday 7 February at 10 am I will be free! It is not real freedom, but it is better than prison. Today, a Dutch court suspended my pretrial detention under the condition of electronic monitoring. This will give me a chance to work on my appeal and fight for… — Alexey Pertsev (@alex_pertsev) February 6, 2025 The Dutch court’s decision follows months of failed bail petitions from Pertsev and increasing scrutiny over the legal treatment of privacy-focused crypto developers. His case has been a focal point for debates over financial privacy and the criminal liability of software developers. Pertsev’s appeal gained momentum after a U.S. federal appeals court ruled in November 2024 that sanctions against Tornado Cash were unlawful. The ruling strengthened arguments from privacy advocates who claim that developers should not be held responsible for how their code is used. Ethereum co-founder Vitalik Buterin previously expressed concern over Pertsev’s prosecution, calling it a troubling precedent for developers. Speaking at a conference in Berlin last year, Buterin remarked, “The Alexey thing is definitely really unfortunate. I think a lot of people have been going under the assumption that just building software is something that’s okay and is a totally legal and legit way to fight for privacy.” Also, Pertsev’s defense argues that he was merely developing open-source software and should not be held liable for its misuse. Did Tornado Cash Enable Money Laundering? The Legal Battle Continues The U.S. Treasury sanctioned Tornado Cash in August 2022, alleging that the crypto-mixing service facilitated the laundering of over $7 billion since its inception in 2019. The sanctions primarily focused on its alleged role in laundering $455 million in stolen assets for North Korea’s Lazarus Group. Following the sanctions, Dutch authorities arrested Tornado Cash developer Alexey Pertsev in 2022, accusing him of aiding illicit financial activity. On May 14, 2024, Dutch judges at the ‘s-Hertogenbosch Court of Appeal found Pertsev guilty of money laundering. He was sentenced to five years and four months in prison for allegedly laundering $1.2 billion through the platform. Pertsev has since announced plans to appeal the verdict. During his trial in March, Pertsev argued that he could not be held responsible for how users engaged with Tornado Cash. However, the court rejected this defense, stating that he and the other co-founders should have implemented stronger safeguards to prevent illicit activity. In a suprising legal twist, the U.S. District Court for the Western District of Texas has reversed OFAC’s sanctions against Tornado Cash. According to a January 21, 2025 court filing , the judgment has been overturned and sent back to the district court for further review. You might also like Texas Court Reverses Tornado Cash Sanctions The post Tornado Cash Developer Alexey Pertsev Granted Supervised Release from Prison appeared first on Cryptonews .
