Accusations Against Tornado Cash Developer

Tornado Cash developer Alexey Pertsev is facing accusations of laundering $1.2 billion of illicit funds through the OFAC-sanctioned platform, according to the latest report.

Pertsev, who was arrested in August 2022, denies the allegations of violating money laundering laws.

  • A recent indictment from the Netherlands alleges that Pertsev engaged in money laundering on Tornado Cash, citing more than 30 transactions on the platform that were considered illegal.
  • One of the flagged transactions, as reported by DL News, involves 175 ETH believed to be connected to the Ronin Bridge hack.
  • Pertsev is currently awaiting trial in the Netherlands, set for March 26, on charges related to money laundering and other financial offenses.
  • Tornado Cash, formerly a leading crypto coin mixing platform, allowed users to make anonymous transactions.
  • In 2022, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) barred US citizens from using the service, citing its role in laundering over $7 billion in crypto.
  • This included $455 million suspected to have been stolen in 2022 by the Lazarus Group, a hacking group affiliated with the North Korean government.
  • In addition to Pertsev, another Tornado Cash developer, Roman Storm, was accused of laundering over $1 billion in illicit funds shortly after.
  • Despite criticism from privacy advocates, both individuals received public support from Edward Snowden, the former NSA whistleblower.
  • Chainalysis data shows that the platform experienced a 93% decrease in monthly cash inflows after the sanctions were imposed compared to pre-sanctions levels.

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