Court extends Pertsev detention in Tornado Cash case

Alexey Pertsev, developer of the Tornado Cash (CRYPTO:TORN) cryptocurrency mixing protocol, will remain in pre-trial detention following a court ruling on November 21. 

Pertsev expressed frustration on X, stating that the decision hampers his ability to prepare for an appeal. 

The case has raised concerns among developers of privacy-preserving blockchain technologies. 

Tornado Cash, a non-custodial protocol, faced U.S. sanctions in 2022 due to its alleged role in facilitating illicit transactions. 

Recent data revealed that Tornado Cash accepted $1.8 billion in deposits in the first half of 2024, marking a 45% increase compared to all of 2023, according to lawmakers. 

Initially detained in the Netherlands in August 2022, Pertsev was convicted of money laundering in May 2024. 

He was sentenced to five years and four months in prison for allegedly laundering $1.2 billion through the protocol. 

While Pertsev argued he should not be held liable for how users exploited the protocol, the court ruled that developers could have implemented measures to prevent misuse. 

Matthew Niemerg, co-founder of AlephZero (CRYPTO:AZERO), noted that privacy-focused protocols must balance privacy features with legal compliance to address evolving regulations effectively. 

Meanwhile, the U.S. House of Representatives has pressed for updates on Tornado Cash, emphasising its ongoing activity despite sanctions. 

This scrutiny adds pressure on privacy-preserving technologies to align with regulatory standards. 

Pertsev’s case highlights the challenges developers face in navigating legal risks while building privacy-focused tools. 

The outcome of his legal battle could significantly influence the future of privacy-focused blockchain innovations and their regulatory compliance. 

At the time of reporting, the Tornado Cash price was $3.51.