Alexey Pertsev, the creator of Tornado Cash, will stay behind bars until the end of February.
Alexey Pertsev is expected to stay behind bars until at least late February after being charged with money laundering through the creation of the application, according to Coindesk. The Russian national is now being detained in the Netherlands.
It was discovered during court hearings in the Netherlands that Pertsev posed a flight risk. The creator of Tornado Cash has been told to stay behind bars until February 20th as a result.
Labeled as a Flight Risk: Pertsev
The Tornado protocol has been detained since August, and the U.S. Treasury has sanctioned it because of allegations of money laundering. Later, according to claims made, the software “had been used to launder over a billion dollars worth of cryptocurrency and fund North Korean hackers.”
All that had been said about the evolving case was in a press release. Pertsev is thereafter “accused of enabling the processing of tainted money by writing the Tornado Cash code,” according to the article.
Arguments in opposition to the allegations did not persuade the Dutch public prosecutor. Many cite the decentralized Tornado Cash protocol as evidence that Pertsev was powerless to influence. Contrarily, the prosecution’s argument claimed that Tornado Cash and PepperSec, a business Pertsev worked on founding, were identical.
Keith Chang, Pertsev’s attorney, acknowledged that he was “extremely upset” in the outcome. It was also said that “it is obvious to us that these judges are not as knowledgeable about the subject as they should be.”
At the time, bitcoin mixers are the sole subject of criminal activity case law, according to Cheng. “It’s critical that the court recognize Tornado Cash as a unique entity.”
The tale substantially improves in interest when the FTX collapses. In comparison to Caroline Ellison or Sam Bankman-Fried, who are both free at this time, the prosecution and confinement of Persev are a long cry. Furthermore, the two parties made a concerted effort to use billions in customer assets fraudulently.