Tornado Cash Developer Alexey Pertsev Denied Bail Again While Awaiting Appeal
Alexey Pertsev, the developer behind the controversial crypto mixing service Tornado Cash, faces an extended stay in prison after being denied bail for a third time. Pertsev stands accused of money laundering in connection with the platform’s operations.
Pertsev’s defense team, led by lawyers Keith Cheng and Judith de Boer, expressed shock at the court’s decision on July 13th. Not only was bail denied, but Pertsev’s request for computer access to prepare for his appeal was also rejected. The court argued that his continued detention wouldn’t hinder his defense and cited security protocols in refusing computer access.
De Boer strongly contested the court’s reasoning. She emphasized the unprecedented nature of the case, questioning the detention’s legality when such “fundamental” legal issues regarding software developer liability were at stake. De Boer further highlighted the core issue: “when a software developer can be criminally liable for third-party misuse.”
This latest decision marks another blow for Pertsev, who was convicted of money laundering by the Netherlands’ Court of Appeal in ‘s-Hertogenbosch back in May 2024. He received a five-year and four-month prison sentence for allegedly facilitating the laundering of $1.2 billion in illicit funds through Tornado Cash.
Pertsev’s legal troubles began in November 2023, when a Dutch court initially denied his request for supervised release. Prosecutors argued that he posed a flight risk. The prosecution further presented Pertsev as a central figure in Tornado Cash’s operations, leading to a second bail denial in February 2024.
JusticeDAO, an organization dedicated to funding legal defense for Tornado Cash developers, took to their X account (a decentralized social media platform) on July 12th to express outrage at the bail denial. They characterized the ruling as a “gross miscarriage of justice” and argued that developers shouldn’t be incarcerated for actions taken by third parties.
Developer Responsibility and the Appeal Process
Pertsev’s defense hinges on the argument that he cannot be held responsible for the illegal activities of those who misused Tornado Cash. The court, however, has rejected this argument, suggesting that Pertsev and his co-founders could have implemented stricter security measures to prevent criminal misuse.
Pertsev’s legal team will now have to navigate the appeal process without their client having access to a computer. This creates a significant hurdle in preparing a defense against the money laundering charges. The outcome of the appeal will be closely watched by the cryptocurrency community and those concerned about developer liability in the face of potential misuse of their creations.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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