Alexey Pertsev, the co-founder and developer behind Tornado Cash, was denied bail by a Dutch court. His lawyers sought bail to allow him to prepare for his appeals process, but the court ruled that his detention would not obstruct his ability to prepare his defense.
Pertsev was sentenced to 64 months in prison by a Dutch court in May for facilitating $1.2 billion in money laundering through the crypto mixer between July 2019 and August 2022.
Last month, Pertsev was denied access to digital facilities such as a computer, despite an 18-point presentation by Cheng arguing the technical nature of the case. His lawyer Keith Cheng claims that Pertsev’s specialized knowledge is crucial for preparing the defense, something “that cannot be done by a lawyer.”
Ameen Soleimani, a friend of Pertsev and founder of JusticeDAO, noted that even if Pertsev’s appeal is accepted, he will likely remain in prison for the next year while his defense team prepares for the hearing.
Pertsev’s defense lawyer criticized the court’s decision, arguing that pre-trial detention involving such fundamental legal questions is “unacceptable.” He added that this case tackles the issue of whether a software developer can be held criminally liable for the misuse of their software by third parties.
The court ruled that Pertsev’s continued detention does not hinder his ability to prepare his defense, and that allowing him computer access would violate safety protocols. This ruling marks the third denial of Pertsev’s bail request, following previous rejections in November 2023 and February.
An account affiliated with JusticeDAO described the ruling as a “gross miscarriage of justice,” arguing that developers should not be jailed for the actions of third parties using their software. During his trial, Pertsev contended that he could not be held responsible for the actions of those who used the Tornado Cash protocol for illegal purposes. However, the court rejected this argument, stating that if Pertsev and the other co-founders had genuinely aimed to prevent criminal abuse of the protocol, they would have implemented higher security measures.
Following the verdict, Pertsev was immediately taken into custody. However, he may request to await his appeal trial from home.
Tornado Cash is a decentralized protocol that provides privacy for transactions on the Ethereum blockchain, allowing users to make anonymous transfers. While private financial transactions are legal, Tornado Cash has been exploited by some users for money laundering.
One of the judges characterized Tornado Cash as primarily a tool for criminal activity, which played a key role in Pertsev’s conviction.
Pertsev was initially jailed in the Netherlands in August 2022 after Tornado Cash was blacklisted by the U.S. government. The U.S. Treasury alleged that Tornado Cash was a key tool for the North Korean hacking group Lazarus, which has been linked to a $625 million hack of Axie Infinity’s Ronin Network and other major crypto thefts.
Pertsev’s time in custody since his arrest in August 2022 does not appear to count towards his current prison sentence. His legal team is seeking leniency by appealing the conviction.
In the U.S., he is not accused of laundering $1.2 billion due to differences in legal approaches between U.S. and Dutch laws regarding personal responsibility in such crimes.
