Tornado Cash Developer Appeals Verdict, KOLs Slam Dutch System
Tornado Cash Developer Appeals Verdict, KOLs Slam Dutch System
Alexey Pertsev, the developer of Tornado Cash, has reportedly appealed a guilty verdict in the Netherlands. This case has sparked a wider discourse on crypto privacy.
Appeal Against the Verdict
Pertsev and his legal team, led by lawyer Keith Cheng, have reportedly submitted an appeal against the 64-month sentence. He was convicted of allegedly facilitating over $2.2 billion in money laundering through Tornado Cash, an Ethereum-powered crypto mixer. Several media agencies reported the motion filed with the s-Hertogenbosch Court of Appeal, but it remained unclear at press time if the appeal would be approved. Attempts to contact Pertsev’s lawyers for confirmation were not immediately successful.
On May 14, a three-judge panel ruled that Pertsev created the open-source privacy tool for illicit use from its inception. Tornado Cash allows users to anonymize transactions on an otherwise public blockchain network. According to the court, Pertsev and other major contributors should be held liable for developing tools without safeguarding against criminal access.
Crypto Community Rallies After Dutch Tornado Cash Verdict
The outcome of Pertsev’s trial was met with backlash from the crypto community, with several key opinion leaders scrutinizing the verdict as a war on privacy in Europe. Many argue this represents a dangerous precedent for future open-source development cases.
Coin Bureau CEO and co-founder Nic Puckrin likened the verdict to blaming Microsoft for developing an operating system used by hackers or charging car makers for aiding bank heists. Privacy advocate Chris Blec insisted that new laws are required to address emerging technology built on blockchains to protect user privacy. Industry proponents have echoed this sentiment, arguing that open-source code is not a criminal offense.
One user named “Novacula Occami” presented a different view, criticizing crypto proponents for adopting a privacy maximalist standpoint despite the clear criminal use of tools like Tornado Cash. “Money laundering, terrorism financing, and fraud are illegal and crypto doesn’t get a pass,” the so-called crypto realist wrote.
Future Implications and Ongoing Cases
As the debate over blockchain privacy continues and Pertsev fights his sentence in the Netherlands, U.S. crypto participants look toward the trial of another Tornado Cash co-founder, Roman Storm. Storm is due in court this September over similar money laundering allegations. However, experts note that U.S. laws differ from Dutch legislation, and a Southern District of New York judge may reach a different conclusion.
Recent cases from the Department of Justice against crypto mixers and the Financial Crimes Enforcement Network’s interpretation of money-transmitting policies pose questions regarding the possible outcomes of Storm’s trial and other instances like Samourai Wallet.
The appeal of Alexey Pertsev and the subsequent reaction from the crypto community highlight the ongoing tension between privacy advocates and regulatory authorities. The outcomes of these cases will likely shape the future of blockchain technology and open-source development.
Read More
Tornado Cash Developer Appeals Verdict, KOLs Slam Dutch System
Tornado Cash Developer Appeals Verdict, KOLs Slam Dutch System
Alexey Pertsev, the developer of Tornado Cash, has reportedly appealed a guilty verdict in the Netherlands. This case has sparked a wider discourse on crypto privacy.
Appeal Against the Verdict
Pertsev and his legal team, led by lawyer Keith Cheng, have reportedly submitted an appeal against the 64-month sentence. He was convicted of allegedly facilitating over $2.2 billion in money laundering through Tornado Cash, an Ethereum-powered crypto mixer. Several media agencies reported the motion filed with the s-Hertogenbosch Court of Appeal, but it remained unclear at press time if the appeal would be approved. Attempts to contact Pertsev’s lawyers for confirmation were not immediately successful.
On May 14, a three-judge panel ruled that Pertsev created the open-source privacy tool for illicit use from its inception. Tornado Cash allows users to anonymize transactions on an otherwise public blockchain network. According to the court, Pertsev and other major contributors should be held liable for developing tools without safeguarding against criminal access.
Crypto Community Rallies After Dutch Tornado Cash Verdict
The outcome of Pertsev’s trial was met with backlash from the crypto community, with several key opinion leaders scrutinizing the verdict as a war on privacy in Europe. Many argue this represents a dangerous precedent for future open-source development cases.
Coin Bureau CEO and co-founder Nic Puckrin likened the verdict to blaming Microsoft for developing an operating system used by hackers or charging car makers for aiding bank heists. Privacy advocate Chris Blec insisted that new laws are required to address emerging technology built on blockchains to protect user privacy. Industry proponents have echoed this sentiment, arguing that open-source code is not a criminal offense.
One user named “Novacula Occami” presented a different view, criticizing crypto proponents for adopting a privacy maximalist standpoint despite the clear criminal use of tools like Tornado Cash. “Money laundering, terrorism financing, and fraud are illegal and crypto doesn’t get a pass,” the so-called crypto realist wrote.
Future Implications and Ongoing Cases
As the debate over blockchain privacy continues and Pertsev fights his sentence in the Netherlands, U.S. crypto participants look toward the trial of another Tornado Cash co-founder, Roman Storm. Storm is due in court this September over similar money laundering allegations. However, experts note that U.S. laws differ from Dutch legislation, and a Southern District of New York judge may reach a different conclusion.
Recent cases from the Department of Justice against crypto mixers and the Financial Crimes Enforcement Network’s interpretation of money-transmitting policies pose questions regarding the possible outcomes of Storm’s trial and other instances like Samourai Wallet.
The appeal of Alexey Pertsev and the subsequent reaction from the crypto community highlight the ongoing tension between privacy advocates and regulatory authorities. The outcomes of these cases will likely shape the future of blockchain technology and open-source development.
Read More