Tornado Cash developer Alexey Pertsev has been released after spending three years in pretrial detention. Pertsev will continue to appeal against his money laundering conviction linked to Tornado Cash.
Pertsev was released under the condition that he remains under electronic monitoring, with his appeal potentially setting a precedent for how courts handle privacy-focused crypto developers.
Pertsev Released From Prison
Pertsev, a Russian national, was sentenced to 64 months in a Dutch prison last year. He announced his release in a post on X. The Tornado Cash developer was released after the denial of multiple bail requests and comes at a time when several debates about the legal treatment meted out to privacy-focused crypto developers are ongoing. Pertsev’s pretrial detention was suspended by the court to allow him to focus on appealing his conviction. Pertsev posted on X thanking his lawyers and those who donated towards his legal expenses, stating,
“Freedom is priceless, but my freedom cost a lot of money. My house arrest was only possible thanks to the work of lawyers, who were paid from your donations. My fight is not over yet, and for a final and confident victory, I still need your help. Please support our fight here.”
Focus On Appeal
The United States Treasury imposed several sanctions on Tornado Cash in August 2022, accusing it of enabling the laundering of over $7 billion since 2019. Pertsev was arrested in the same month and charged with money laundering and facilitating illicit transactions through the platform. Since his arrest, Pertsev has been actively appealing his conviction and asking for bail. However, despite multiple attempts, his requests were denied. Pertsev’s defense maintains he created open-source software and should not be held liable or criminalized for its misuse.
The Liability Debate
The case against Pertsev and Tornado Cash has ignited a debate over privacy and whether software developers must be liable for how their code is used. Pertsev’s case gained momentum after a US federal appeals court ruled that sanctions against Tornado Cash were unlawful. A court filing on January 21 confirmed the district court judgment had been overturned and sent back for review.
“It is ordered and adjudged that the judgment of the district court is reversed and the cause is remanded to the district court for further proceedings in accordance with the opinion of this court.”
The federal appeals court’s decision was a shot in the arm for privacy advocates who claim developers must not be punished for actions beyond their control. Ethereum co-founder Vitalik Buterin also expressed concern about Pertsev’s prosecution and called it a troubling precedent for developers, adding that many believed building software was a legitimate and legal way to protect privacy. Buterin has also made several donations towards Pertsev’s legal fund through the decentralized fundraising platform Juicebox.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
