Alex Pertsev, co-founder of Tornado Cash, was released, causing a 20% surge in TORN token's value.
Alex Pertsev's Case
Alex Pertsev, co-founder of Tornado Cash, was released from pretrial detention in the Netherlands. Facing money laundering charges, he is now under electronic monitoring to prepare his appeal.
Legal Issues Surrounding Tornado Cash
In August 2022, Dutch authorities arrested Alex Pertsev following U.S. sanctions against Tornado Cash and its developers. He was charged with facilitating money laundering and being negligent in preventing illegal activities on the platform. In May 2024, a court sentenced Pertsev to five years in prison, acknowledging that Tornado Cash could be a neutral tool, but developers had a responsibility to prevent its misuse.
Discussion on Developers' Liability
On November 26, the Fifth Circuit Court of Appeals directed the US Treasury’s Office of Foreign Assets Control (OFAC) to remove addresses linked to Tornado Cash from its blocked list. This decision was a significant victory for Pertsev and Roman Storm, another Tornado Cash developer arrested in August 2023 and awaiting trial.
The Pertsev and Tornado Cash case continues to stir debates in the crypto community, raising crucial issues about regulation and developer liability.
