Alexey Pertsev, one of the developers behind Tornado Cash, a crypto-mixing tool, has been sentenced to more than five years behind bars. He was found guilty of money laundering by a Dutch court.
Tornado Cash: developer convicted for sinister Crypto Fraud
The 31-year-old was found guilty of allowing criminals including North Korean Lazarus Group to launder a staggering $1.2 billion in cryptocurrency through the Tornado Cash mixer. According to DL News, this happened between July 9, 2019, and Aug. 10, 2022.
The prosecutors alleged that the mixer welcomed the fraudsters with open arms. Per the verdict, he bagged a sentence of five years and four months in prison. His fate was sealed by a panel of three judges.
One of the judges overseeing the case reportedly stated that “Tornado Cash is a tool intended for criminals based on its nature and functioning”.
Pertsev’s representatives have not given any response regarding the matter. However, based on the provisions of the law, they have a 14-day window to file an appeal against the decision.
While the usage of tools like Tornado Cash cannot be controlled, crypto innovators are taking the initiative to protect their users. In line with this, the Shibarmy Scam Alerts, the scam awareness channel, has recently issued fresh warnings about fraudulent accounts impersonating top SHIB developers.
Consequences for turning a blind eye
In the fall of 2020, crypto scammers and thieves started to grasp the immense potential of Tornado Cash. This clever financial privacy tool allowed users to anonymize their funds by obfuscating the traceability of crypto transactions on the Ethereum blockchain.
The prosecutors said Pertsev chose to turn a blind eye to the abuse and actively maintained the website to ensure its ongoing functionality.
He is among a group of individuals who are being targeted for their involvement in creating Tornado Cash. In 2022, the United States imposed sanctions on Tornado Cash, making it against the law for US citizens to use the service.
The US Treasury’s Office of Foreign Assets Control warns that any product enabling anonymous transactions without discrimination threatens national security.
Roman Storm, the co-founder of the platform, is also facing charges in the U.S. for his role in overseeing the development of this controversial software. His trial is set to take place in September in a Federal Court in New York.