Dutch Court Sentences Tornado Cash Developer To 64 Months For Money Laundering

Zinger Key Points
  • The court stated that Tornado Cash does not prevent laundering of criminal assets, justifying Pertsev’s conviction.
  • The indictment covered Pertsev's habitual money laundering activities between July 2019 and August 2022.

Alexey Pertsev, a developer associated with Tornado Cash, has been convicted of money laundering by the s-Hertogenbosch court in the Netherlands.

What Happened: The court sentenced Pertsev to 64 months in prison following a verdict on Tuesday, Coindesk reported.

The 31-year-old Russian national was taken into custody immediately after the court session and will remain in detention until an appropriate prison is designated for his sentence.

"Tornado Cash does not pose any barrier for people with criminal assets who want to launder them," stated the court’s translated verdict, obtained by CoinDesk.

"That is why the court regards the defendant guilty of the money laundering activities as charged."

The indictment revealed that between July 9, 2019, and August 10, 2022, Pertsev engaged habitually in money laundering activities and should have been aware of the illicit nature of transactions facilitated through Tornado Cash.

Pertsev was initially arrested in the Netherlands in August 2022 after Tornado Cash was sanctioned by the U.S. government.

The U.S. Treasury had accused Tornado Cash of being a tool for the North Korean hacking group Lazarus, linked to the $625 million Axie Infinity Ronin Network hack and other significant crypto heists.

Also Read: President Biden Cracks Down On Chinese-Backed Crypto Mining Facility Near U.S. Missile Base

Why It Matters: This conviction may set a precedent for future legal proceedings involving other Tornado Cash developers.

Roman Storm and Roman Semenov, also involved with the crypto mixer, are facing similar accusations in the United States for money laundering and sanctions violations.

Storm is scheduled to stand trial in September, while Semenov remains at large. Storm was apprehended last year after Tornado Cash was re-added to the U.S. sanctions watchlist.

In contrast, U.S. laws do not hold Storm accountable for laundering $1.2 billion, highlighting differences in how U.S. and Dutch legal systems address personal responsibility in such cases.

What’s Next: The implications of Pertsev’s conviction will be a focal point at Benzinga’s Future of Digital Assets event on Nov. 19, where experts will discuss the evolving regulatory landscape of digital finance.

Read Next: This AI Altcoin’s ‘Predatory Tokenomics’ Will Fill The Pockets Of Team And Insiders, Trader Warns

Image: Shutterstock

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