Alexey Pertsev, one of the core developers of Tornado Cash, has been temporarily released after nine months of prison life. He can now access his home but with strict monitoring from the authorities. This is not the first time Pertsev has been released from prison. On April 26, 2023, he was out temporarily with ankle bracelet monitoring after repeated denials of release.
“It is not real freedom, but it is better than prison.”, Pertsev posted on X after the release. This has given the crypto community a determination to fight against his charges. Also, the case poses a legal, or rather, moral, and philosophical question of whether Pertsev can be taken into custody for the illegal actions of Tornado Cash users.
Who Is Alexey Pertsev? What Is Tornado Cash Used For?
Born in Russia, Alexey Pertsev is a software developer and blockchain expert. He is a part of the core developer team of the open-source cryptocurrency mixing service Tornado Cash. The Ethereum-based platform uses smart contracts to mask the sender and receiver of digital assets. Users can send their coins to Tornado’s mixer which will send the funds to different addresses to break the link to the original sender address. In August 2022, the U.S. Department of the Treasury blacklisted the project, which was followed by the arrest of Alexey Pertsev.
The Arrest Of Alexey Pertsev: What Happened?
The U.S. Treasury Department alleged that Tornado Cash was used for the laundering of around 7 billion dollars of which $455 million was believed to be Lazarus Group’s illegal fund. As a hacking group alleged to be run by the North Korean government, the involvement of Lazarus heated up the issue.
The further investigations resulted in the arrest of Alexey Pertsev on August 10th, 2022. A year later, his co-developers of Tornado Roman Storm and Roman Semenov were also arrested. In 2024, a court in the Netherlands found that Pertsev was guilty and sentenced him to 64 months (5 years and 4 months) in prison.
The Legal Battle: Is Alexey Pertsev Responsible For Users’ Actions?
Alexey Pertsev’s legal battle was supported through donations from web3 enthusiasts. A major argument was how Pertsev is responsible for the activities of the platform’s users. Traditionally, the developers of a platform are seen as neutral foundation builders who cannot be accused of the illicit actions of users.
A panel of U.S. judges opined that Tornado Cash’s code is immutable and cannot be owned, generating hope for him. In November 2024, the US Fifth Circuit Appeals Court found that the Office of Foreign Assets Control (OFAC) exceeded its authority while suspending Tornado.
Impact On The Crypto Community
There were protests in the crypto community even in the early stages of the controversy. When the U.S. government blacklisted Tornado Cash in 2022, renowned people like Edward Snowden voiced against the action. According to Snowden, it was a “do or die” moment for crypto.
Various members of the crypto community supported Pertsev, including the contribution of funds from Ethereum’s co-founder Vitalik Buterin. The issue has resulted in various productive discussions, including the development of an advanced legal framework for such a complex decentralized system.
Also read: Crypto Pig Butchering Scam: A New Digital Threat!
Final Thoughts: The Future Of Tornado Cash
After the blacklisting of Tornado Cash, its domain was taken down by the authorities and its code was removed from GitHub. However, there are plenty of similar networks in the blockchain world providing mixing services for everybody. We will likely witness a regulatory framework that can separate the individual culprits of networks and release the burden from the developers of those networks.
Governments around the globe are adopting crypto and new rules and regulations are being formed, so we can expect a favorable final decision from the authorities regarding Alexey Pertsev’s case. Also, the newly formed pro-crypto U.S. Government guided by Donald Trump provides hope for Pertsev. An example is the recent release of Ross Ulbricht.
You can support Alexey Pertsev via Juicebox.money.
