Background
A Dutch court has sentenced Alexey Pertsev, a developer of the crypto mixing tool Tornado Cash, to 64 months in prison. The court alleges that Tornado Cash was used to launder money from criminal activities, including terrorism.
Tornado Cash’s Role in Money Laundering
According to the court, Tornado Cash facilitated the laundering of approximately $1.2 billion in Ethereum. However, the estimated amount laundered could exceed $2.2 billion. The tool was allegedly used to conceal the origin, ownership, and destination of cryptocurrency transactions.
Pertsev’s Responsibility
The court found that Pertsev and his co-founders were aware of the potential use of Tornado Cash for money laundering. Despite this, they continued to develop and offer the tool without implementing measures to prevent abuse.
Arrest and Charges
Pertsev was arrested due to the tool’s anonymity, which made it difficult to investigate and control. The court highlighted the significant value of Tornado Cash to criminal organizations, as evidenced by its use in laundering stolen funds from the Axie Infinity hack.
Sentence and Seizure
The court agreed with the prosecution’s demand for a 64-month prison sentence. Pertsev’s seized Porsche and approximately €1.9 million worth of cryptocurrency were also forfeited.
Other Co-founders
One of Tornado Cash’s other founders, Roman Storm, was arrested in the United States. The third co-founder, Roman Semenov, remains a fugitive and has been charged with money laundering.
