Tornado Cash Dev Released: Freedom Or Just A Breather?

Alexey Pertsev, the developer of Tornado Cash, will be released from prison on Friday after spending nearly two years in detention.

His release comes ahead of his appeal against a money laundering conviction handed down by a Dutch court last year.

The Netherlands’ judicial authorities granted his release under strict conditions, including electronic monitoring, as he prepares for his legal battle.

Legal Battle Continues Despite Release

In May 2024, the Dutch court sentenced Pertsev to 64 months in prison for facilitating money laundering through Tornado Cash.

His legal team rushed to file an appeal, challenging that Tornado Cash software should not bear responsibility for users’ actions.

The protest delay by the Netherlands’ Court of Appeal in s-Hertogenbosch forced Pertsev to stay in jail for months before his trial began.

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Prosecutors from the Netherlands maintained that Tornado Cash had served more than 1 billion dollars for criminals who hacked various crypto platforms.

The Ronin network suffered a major crypto space blow in 2022 when over 600 million dollars were stolen from it.

Privacy advocates and developers of open-source software, along with their supporters, believe that his detention unjustly persecutes the creators of this software type.

From the beginning, Pertsev tried to obtain bail from the court, which consistently rejected his petitions until his recent release.

The defense team demonstrated that Petsev’s detention duration hampered his ability to organize his defense preparation.

His release will enable his defense team to develop a stronger plan for fighting his conviction.

Tornado Cash Case Sparks Developer Freedom Debate

Privacy advocates have expressed concerns about the legal action against Pertsev because it represents a risk to developers’ freedom.

Vitalik Buterin‘s statement demonstrated how legal action creates risks for all software developers.

According to him, writing computer software should not trigger criminal responsibility.

Widespread interest developed around the case because a U.S. court issued a ruling for sanction restrictions on Tornado Cash.

In November, the Fifth Circuit Court declared against classifying permanent smart contracts as property that would fall under current sanction laws.

The court’s recent decision strengthened the foundation for Pertsev’s defense team to question and dismiss his criminal charges.

Nonprofit organizations such as the Electronic Frontier Foundation, along with others, have expressed concerns regarding making developers responsible for what their programs enable others to do.

According to these groups, prosecuting software creators hinders innovation, creating negative outcomes for blockchain technology.

According to his defenders, Pertsev’s release has increased his odds of demonstrating his innocence.

Pertsev’s legal battle is part of international regulators’ larger crackdown on cryptocurrency privacy tools.

Authorities claim that platforms like Tornado Cash enable illicit financial activities, making it harder to track stolen assets.

However, crypto advocates argue that privacy tools serve a legitimate purpose in protecting user data from surveillance.

The case extends beyond the Netherlands, with the U.S. also pursuing action against Tornado Cash developers.

Roman Storm, a co-founder of the service, faces prosecution in Manhattan for allegedly facilitating money laundering.

His legal team filed a motion to dismiss the charges, but a New York court rejected it in September.

Venture capital firm Paradigm recently donated $1.25 million to Storm’s legal defense, calling the case a critical fight for developer rights.

Co-founder Matt Huang emphasized that holding developers accountable for how others use their software creates a chilling effect in the tech industry.