The Dutch court has mandated that Alexey Pertsev, the creator of the Tornado Cash cryptocurrency mixer, remain in custody while his trial progresses. According to RBC Crypto and CoinDesk reports, the next hearing will occur by late April.
Tornado Cash Accused of Helping Hackers to Launder Money
Tornado Cash is a blockchain protocol that operates on the Ethereum platform, allowing users to mask their transactions by concealing the sender and receiver of tokens. Unfortunately, it has become notorious among hackers as they often use this service to withdraw funds from compromised projects. Tornado Cash is fuelled by PepperSec Inc.’s software code, with Alexey Pertsev serving as its founder and CEO, according to research company Kharon.
In August 2022, Pertsev was apprehended in Amsterdam shortly after the US Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash. He is accused of money laundering using a crypto mixer yet denies any wrongdoing.
On February 15th, a Dutch court in East Brabant ruled that the Russian developer could choose to either hide or try to conceal evidence if granted bail. Prosecuting attorney Martin Berlage highlighted how Pertsev and his companions were operating Tornado Cash much like an enterprise, almost acting as banks that accept money with questionable origins without any questions asked.
Pertsev’s Lawyer Hopeful That Trial Will Lead To Good Things
Keith Cheng, Pertsev’s attorney, informed the publication that today’s hearing was an ideal starting point. It allowed Pertsev to demonstrate how decentralized finance operates and what lies behind the Tornado Cash Protocol so courts can understand why it is not money laundering. Cheng believes his client would have been released on bail if only those in charge had more knowledge of this matter.
On August 25th, the initial closed court hearing for Alexey Pertsev’s case occurred, and the judge dismissed his lawyers’ plea for bail. Then at a later hearing in November, it was decided that he should remain detained until February 2021.
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