In the high-profile crypto money laundering case against Tornado Cash developer Alexey Pertsev, a court has denied his bail, compelling him to remain in custody as his legal team prepares the appeal. As reported, on May 14, a Dutch court sentenced the 31-year-old Russian national to a 64-month prison term, or more than five years, for laundering $1.2 billion in stolen and hacked crypto through the OFAC-sanctioned Tornado Cash crypto mixer.
Court’s Decision and Defense Response
Alexey Pertsev‘s defense attorney, Keith Cheng, expressed surprise at the court’s decision to deny bail, particularly given the additional refusal to grant Pertsev access to a computer to prepare his appeal. The court argued that Pertsev’s continued detention would not impede his ability to mount a defense, and providing computer access would violate safety protocols.
Judith de Boer, another lawyer on Pertsev’s defense team, criticized the court’s decision as “unacceptable,” highlighting the pre-trial detention’s involvement in “such fundamental” legal issues. De Boer emphasized the unprecedented nature of this case, questioning when a software developer can be held criminally responsible for third-party misuse of their creations.
His defense lawyers argued that Pertsev would not be a flight risk and that he needed access to a computer and the internet to prepare for his appeal trial.
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Background and Legal Proceedings
On May 14, 2024, the ‘s-Hertogenbosch Court of Appeal in the Netherlands found Pertsev guilty of money laundering. The court sentenced him to five years and four months in prison for his alleged role in laundering illicit assets through Tornado Cash.
During his trial, Pertsev argued that he could not be held responsible for the crimes of others who abused the Tornado Cash platform. He also said that since the protocol is automated and open source, anyone cannot stop it. However, the judges argued in their verdict that if the developers wanted to prevent crime, they should have designed it into the protocol.
The July 13 decision to deny bail followed previous refusals in November 2023 and February 2024. In these instances, the prosecution successfully argued that Pertsev posed a flight risk and was a central figure in Tornado Cash‘s operations.
Community Reaction and Future Steps
The legal community and Pertsev’s supporters have reacted strongly to the court’s decisions. An affiliated X account of JusticeDAO, an organization dedicated to raising funds for the legal defense of Tornado Cash developers, condemned the ruling as a “gross miscarriage of justice.”
“Alexey will spend the next year in jail while his legal team prepares for the appeal hearing. This is a gross miscarriage of justice. Developers do not belong in jail for the actions of third parties,” stated the JusticeDAO account on July 12.
Pertsev’s Defense and Legal Arguments
During his trial in March, Pertsev contended that he could not be held liable for the actions of those who used Tornado Cash for illegal purposes. However, the court rejected this argument, stating that if Pertsev and the other co-founders had genuinely intended to prevent criminal abuse of the protocol, they would have implemented stronger security measures.
As Pertsev’s legal team prepares for the appeal, this case continues to draw attention to the complex legal landscape surrounding the responsibilities and liabilities of software developers in the cryptocurrency space.
