Developer of Tornado Cash Granted Conditional Release Pending Appeal
Alexey Pertsev, the Tornado Cash developer, is set to walk free from prison this Friday as he prepares to appeal his 2024 money laundering conviction. In May of the same year, he was slapped with a hefty 64-month sentence in a Dutch penitentiary, accused of abetting criminals in laundering over a whopping $1 billion worth of ill-gotten gains. Prosecutors argued that being aware that Tornado Cash was used to wash funds from various cyberattacks should have been a red flag for Pertsev.
Tornado Cash, a cryptocurrency mixing platform, keeps transactions private for its users. Unfortunately, it gained notoriety when it was sanctioned by the U.S. government for its illicit ties to North Korean hackers.
With his imminent release, Judith de Boer, Pertsev's appeals lawyer, feels they can now focus entirely on his defense and prepare for the upcoming legal battle in a more favorable environment.
Pertsev's release comes after spending nearly two years in confinement since his 2022 arrest. The decision to release him on electronic monitoring was warmly welcomed by de Boer, as it allows a fairer opportunity to bolster his defense.
A crucial U.S. court ruling in November 2024 declared the sanctions against Tornado Cash unlawful, backing up Pertsev's arguments in his appeal.
Countless privacy advocates and crypto experts—including Ethereum co-founder, Vitalik Buterin—have vocalized their criticism towards Pertsev's prosecution. They argue that it sets a dangerous precedent, penalizing software developers for misuse by others. This criticism also extends to Pertsev's co-founder, Roman Storm, who faces similar charges in the U.S. courts and has received support from organizations such as the Electronic Frontier Foundation and venture capital firm Paradigm.
Matt Huang, co-founder of Paradigm, voiced concerns that targeting developers in such cases could effectively put a damper on innovation in the cryptocurrency industry. Although Pertsev's release is confirmed, his legal struggles persist, and the outcome of his appeal may have far-reaching consequences for privacy-focused cryptocurrency tools and the future of digital finance.
Insights:- Changing Regulatory Landscape: A recent Department of Justice memo (April 2025) expresses the intention to refrain from prosecuting crypto mixers for "unwitting" user misconduct, potentially aiding Pertsev's defense.- Sanctions Reversal: The Office of Foreign Assets Control (OFAC) revoked Tornado Cash sanctions in March 2025, following courts ruling that immutable smart contracts aren’t legally "property". However, the Treasury Department still maintains some leeway to re-sanction the protocol.- Impact on Privacy Tools: Ongoing legal battles and inconsistent global enforcement create an uncertain environment for privacy tools. Tornado Cash sees only ~31% of its pre-sanction deposit levels, indicating lasting repercussions even after sanctions are lifted. DeFi groups call for an end to prosecutions such as Storm's, arguing that they stifle innovation and may influence Pertsev's case.
- The release of Alexey Pertsev, the Tornado Cash developer, on electronic monitoring, expects a fairer opportunity to bolster his defense against the 2024 money laundering conviction in a more favorable environment.
- A U.S. court ruling in November 2024 backs up Pertsev's arguments in his appeal, declaring the sanctions against Tornado Cash unlawful.
- Numerous privacy advocates and crypto experts, including Ethereum co-founder Vitalik Buterin, criticize Pertsev's prosecution, asserting it sets a dangerous precedent by penalizing software developers for misuse by others.
- The decision to release Pertsev on electronic monitoring was warmly welcomed by his appeals lawyer, Judith de Boer, as it allows them to focus entirely on his defense in preparation for the upcoming legal battle.
- Matt Huang, co-founder of Paradigm, voices concerns that targeting developers in such cases could effectively put a damper on innovation in the cryptocurrency industry, with the future of privacy-focused cryptocurrency tools and digital finance hanging in the balance.
