Tornado Cash Developer Alexey Pertsev Denied Bail for Appeal Preparation
Alexey Pertsev, the developer behind the controversial cryptocurrency mixer Tornado Cash, has been denied bail by a Dutch court as he prepares to appeal his conviction on money laundering charges. The Court of Appeal of ‘s-Hertogenbosch in the Netherlands ruled on Friday that Pertsev will remain in detention, marking the third time his request for bail has been rejected.
Pertsev was sentenced to 64 months in prison in May 2024 for allegedly facilitating the laundering of $1.2 billion through the Tornado Cash platform between July 2019 and August 2022. His defense team promptly filed an appeal following the conviction.
The court’s decision comes as a surprise to Pertsev’s lawyers, who argued that their client needed access to digital facilities, including a computer and internet, to adequately prepare for his appeal. Defense attorney Keith Cheng presented an 18-point plan detailing the technical aspects of the case that require Pertsev’s expertise. However, both the court and the prison rejected these requests, citing safety protocols.
Judith de Boer, another of Pertsev’s lawyers, criticized the decision, stating, “In a case involving such fundamental legal questions, pre-trial detention is unacceptable.” She emphasized that this case addresses the unprecedented issue of when a software developer can be held criminally liable for third-party misuse of their creation.
The case has sent shockwaves through the cryptocurrency community, with many viewing it as a pivotal legal battle for the industry. Advocates argue that targeting developers for the misuse of their software could have a chilling effect on blockchain innovation.
JusticeDAO, an organization raising funds for the legal defense of Tornado Cash developers, described the ruling as a “gross miscarriage of justice” on social media. They stated, “Alexey will spend the next year in jail while his legal team prepares for the appeal hearing. Developers do not belong in jail for the actions of third parties.”
During his initial trial, Pertsev maintained that he could not be held responsible for the criminal activities of those who used the Tornado Cash protocol. However, the court rejected this argument, suggesting that if Pertsev and his co-founders had genuinely wanted to prevent criminal abuse, they would have implemented stronger security measures.
As Pertsev’s case continues to unfold, it raises important questions about the balance between innovation in the crypto space and the prevention of financial crimes. The outcome of his appeal could have far-reaching implications for developers working on privacy-focused blockchain technologies.
