Developer of Tornado Cash Files Appeal Against Money Laundering Conviction, Seeks Verdict Reversal

Tornado Cash Developer Challenges Conviction for Money Laundering, Seeks Verdict Overturn


Ruholamin Haqshanas
Last updated:
May 16, 2024 06:39 EDT
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2 min read


Alexey Pertsev, the mastermind behind Tornado Cash, has filed an appeal with the s-Hertogenbosch court of appeal after being found guilty of engaging in money laundering activities.
The appeal process is expected to span several months, although it remains unclear whether the appeal has been granted.
Pertsev, who has been handed a 64-month prison sentence, has the option to request home confinement while awaiting the appeal trial.
Tornado Cash Developer Arrested After Guilty Verdict
Notably, following Tuesday’s verdict, he was immediately taken into custody to begin serving his sentence.
“According to a rough translation of the verdict, Tornado Cash does not present any obstacles for individuals with illicit assets who wish to launder them,” the court stated.
Based on this assessment, the court found Pertsev guilty of the charged money laundering activities.
Pertsev was apprehended in the Netherlands in August 2022 when Tornado Cash was added to the U.S. government’s blacklist.
At the time, the U.S. Treasury accused Tornado Cash of being a vital tool for the North Korean hacking group Lazarus.
This group has been linked to major cryptocurrency thefts, including the $625 million hack of Axie Infinity’s Ronin Network.
Roman Storm and Roman Semenov, who also played a role in developing the crypto mixer, are facing allegations of money laundering and sanctions violations in the United States.
Storm is scheduled to stand trial in September, while Semenov has not yet been captured.
Storm was arrested last year after Tornado Cash was once again included in the U.S. sanctions watchlist.
In late March, Storm submitted a motion to dismiss all three charges against him, asserting that he did not operate a money laundering business and did not violate the International Emergency Economic Powers Act.
However, the US Department of Justice (DOJ) rejected Storm’s motion, stating that the service was introduced in 2019 as a mixer and comprised a website, user interface, a combination of smart contracts, and a network of “relayers.”
US House Proposes Ban on Cryptocurrency Mixers
Democratic representatives have presented the US Blockchain Integrity Act, which aims to crack down on cryptocurrency mixers.
The proposed legislation seeks to disrupt the flow of illegal funds and promote transparency by prohibiting financial institutions, cryptocurrency exchanges, and registered money service businesses from accepting funds processed through a mixer.
Failure to comply would result in civil penalties of up to $100,000.
This development comes amid the U.S. government’s ongoing crackdown on crypto-mixing services.
Recently, the founder of Bitcoin Fog, a $400 million crypto-mixing service, was convicted of money laundering.
Roman Sterlingov was found guilty of money laundering, money laundering conspiracy, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act.
As reported, the US Treasury has included Tornado Cash on its Specially Designated Nationals list, effectively prohibiting Americans from using this mixer.
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