Alexey Pertsev, the creator of Tornado Cash, has appealed his conviction for money laundering and has filed an appeal with the 's-Hertogenbosch court in the Netherlands. The verdict was handed down after Pertsev was found guilty of money laundering and sentenced to 64 months in prison. The appeal process is expected to take several months, although it is not yet known whether the court will accept Pertsev's appeal.
Links to the Lazarus hacking group
After the verdict was announced on Tuesday, Pertsev was immediately arrested and taken into custody to begin serving his sentence. The court ruled that Tornado Cash does not provide any barrier for individuals who want to launder money obtained from criminal activities. Pertsev was arrested in the Netherlands in August 2022, when Tornado Cash was placed on the US Treasury Department's sanctions list.
The US Treasury Department accused Tornado Cash of being a key tool for North Korea's Lazarus hacking group, which is responsible for significant cryptocurrency thefts, including an attack on Ronin Network, which belongs to Axie Infinity, resulting in the theft of $625 million.
Other accused individuals and further steps
Roman Storm and Roman Semenov, who also developed Tornado Cash, have been charged with money laundering and violating US sanctions. Storm is scheduled to appear in court in September, while Semenov has not yet been arrested. Storm was arrested last year when Tornado Cash was placed on the US sanctions list again. In March, Storm filed a motion to dismiss all charges, claiming that he did not engage in any illegal activities related to money laundering, but the US Department of Justice rejected his motion.
New regulations for cryptocurrency mixers
The US is working on new regulations aimed at tightening control over cryptocurrency mixers. Democratic lawmakers have introduced the US Blockchain Integrity Act, which aims to disrupt illegal fund flows and promote transparency. The law prohibits financial institutions, cryptocurrency exchanges, and financial service providers from accepting funds processed by mixers. Violations of these regulations could result in civil fines of up to $100,000.
Recently, Bitcoin Fog founder Roman Sterlingov was found guilty of money laundering, conspiracy to launder money, and operating an unregistered money transmission business. As a result, Tornado Cash has been added to the US Treasury Department's list of specially designated nationals, effectively banning Americans from using this mixer.
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