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Alexey Pertsev Appeals Money Laundering Conviction
Alexey Pertsev, the developer behind Tornado Cash, has lodged an appeal with the s-Hertogenbosch court of appeal after being found guilty of money laundering. The appeal process is anticipated to take around several months, although it remains unclear whether the appeal has been granted.
Legal Proceedings and Sentencing
Pertsev, who received a 64-month prison sentence, has the option to request a home confinement while awaiting the appeal trial. Notably, following Tuesday’s verdict, he was immediately taken into custody to commence serving his sentence.
Allegations and Accusations
The court found Pertsev guilty of the charged money laundering activities based on this assessment. Pertsev was detained in the Netherlands in August 2022 when Tornado Cash was blacklisted by the U.S. government. At the time, the U.S. Treasury accused Tornado Cash of being a crucial tool for the North Korean hacking group Lazarus.
Related Developments
Roman Storm and Roman Semenov, who also played a role in the development of the crypto mixer, are facing allegations of money laundering and sanctions violations in the United States. Storm is scheduled to stand trial in September, while Semenov has not yet been apprehended.
US Legislation Targets Cryptocurrency Mixers
Democratic representatives have introduced the US Blockchain Integrity Act, which aims to crack down on cryptocurrency mixers. The proposed legislation aims to disrupt the flow of illicit funds and promote transparency by prohibiting financial institutions, cryptocurrency exchanges, and registered money service businesses from accepting funds processed through a mixer.
Penalties and Consequences
Failure to comply with the regulations would result in civil penalties of up to $100,000. This development comes amidst the U.S. government’s ongoing crackdown on crypto-mixing services.
Recent Convictions and Bans
Recently, the founder of Bitcoin Fog, a $400 million crypto-mixing service, was convicted of money laundering. Roman Sterlingov was found guilty of money laundering, money laundering conspiracy, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act. The US Treasury has added Tornado Cash to its Specially Designated Nationals list, effectively banning Americans from using this mixer.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
