This Tornado Cash Developer is Accused of Aiding $1.2B Money Launder

The developer will face trial on March 26th over allegations of aiding $1.2 billion exploits, Dutch prosecutors reveal in a court document.

A three-page Dutch document revealed that Alexey Pertsev, the co-founder and developer of privacy protocol Tornado Cash, has allegedly supported the laundering of over $1.2 billion in crypto assets. The document, seen by DL News, adds that a Dutch court will determine the fate of the Russian developer in a week.

Tornado Cash Co-Founder Faces Criminal Charges

The Dutch authorities detained Pertsev in August 2022. He has been monitored with a GPS ever since. Earlier that month, the United States Treasury Department sanctioned several Tornado Cash addresses, labelling the privacy network as a key tool for bad actors to siphone users’ funds.

Following his arrest, several crypto community members petitioned for the Tornado Cash co-founder’s release. Instead of considering the petition, the Dutch authorities proceeded with its court case against Pertsev.

As he prepares to face trial on March 26th, Pertsev will be charged for at least 36 illegal transactions that passed through Tornado Cash. The indictment by Dutch prosecutors shows that the Russian developer is due to stand trial in ‘s-Hertogenbosch, a city in the Netherlands.

Alexey Pertsev, on his part, has refuted any involvement in violating money laundering laws. In Pertsev’s defence, Keith Cheng, the developer’s lawyer, explained:

“Prosecutors are suspecting Pertsev of money laundering and they have described it in a general way, but they don’t specify which exact acts he has committed to take part in the criminal offence.”

Tornado Cash – A Tool for Hackers

The popular crypto mixer has become a primary tool for bad actors as they transport stolen funds. Among the several illegal transactions cited by the Dutch authorities is the infamous exploit of the Ronin bridge, a protocol owned by the blockchain game project Axie Infinity. Out of about $625 million that was lost to hackers in March 2022, the court document cited 175 ETH (worth over $570,000) moved through the crypto mixer.

More illegal transactions involved other decentralized protocols like Harmony and Nomad Bridge.