Amidst all the turbulence in the cryptosphere, a beacon of light emerges for Tornado Cash developer, Alexey Pertsev. The Ethereum Foundation (EF), in a significant gesture of support, has pledged a hefty sum of $1.25 million for the developer’s legal defense. This action follows Pertsev’s supervised release, allowing him to gear up for an appeal against his money laundering conviction in the Netherlands.
Ethereum Foundation Steps up for Alexey Pertsev
Earlier this week, the Ethereum Foundation shared an update about their impressive $1.25 million pledge towards the legal defense of Alexey Pertsev. Highlighting its commitment to privacy and the innocence of code creation, the Foundation firmly stands in support of the Tornado Cash developer.
In a major turn of events in August 2022, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action against Tornado Cash. The Ethereum-based crypto mixer was accused of lacking effective controls that could deter malicious actors from using the protocol for money laundering. Looking into the severity of the charges, it was alleged that the decentralized protocol was instrumental in laundering over $7 billion since its inception in 2019, including a substantial amount linked to North Korea’s notorious hacking group, Lazarus Group.
This chain of events led to the apprehension of Pertsev in the Netherlands, where he was charged with a substantial money laundering case worth $1.2 billion. This occurred from December 2019, when Tornado Cash was launched, until August 2022.
May 2024 marked the conviction of Pertsev for money laundering by the s-Hertogenbosch Court of Appeal, culminating in a prison sentence of five years. Nevertheless, the developer received a recent supervised release to work on his forthcoming appeal. His legal team lodged an appeal against the ruling post his conviction, leading to a supervised release to prepare for the appeal outside confinement. Pertsev took to an X post to announce his release on February 7, expressing that his release wasn’t true freedom, but was certainly a better alternative to being incarcerated.
Upholding the Fight for Privacy Tools
Expressing his gratitude towards the Ethereum Foundation, Pertsev was thrilled with the donation and expressed that he can now fully concentrate on preparing his appeal.
Vitalik Buterin, the founder of Ethereum, echoed the Foundation’s sentiment. Known for advocating privacy on several occasions and promoting protocols like Railgun, Buterin maintains, “Privacy is normal, and writing code is not a crime.” He recently rallied for Pertsev’s release along with Tornado Cash’s co-founder, Roman Storm. Storm, who was detained in 2022, awaits trial slated for April 14. Buterin’s call to action came after former US President Donald Trump granted a full pardon to Silk Road founder Ross Ulbricht.
Paradigm, a crypto firm, had also previously donated $1.25 million towards the legal defense of Storm, Tornado Cash’s co-founder. They argued that the case’s prosecution threats could potentially make software developers criminally liable for the malpractices of third parties. This could create a significant hindrance in the crypto landscape and beyond.
Interestingly enough, crypto privacy had a small victory a month ago when the US District Court for the Western District of Texas reversed the OFAC sanctions against Tornado Cash following its November ruling. The Fifth Circuit Court of Appeals ruled that OFAC had overstepped its authority by sanctioning the crypto mixing protocol. The court concluded that Tornado Cash’s immutable smart contracts can’t be classified as “property” under federal law, keeping them beyond the International Emergency Economic Powers Act (IEEPA)’s bounds.
FAQs
What is the Ethereum Foundation’s stand concerning Alexey Pertsev?
The Ethereum Foundation has shown significant support for Alexey Pertsev, the developer of Tornado Cash, by pledging $1.25 million towards his legal defense following his money laundering conviction.
What was the charge against Tornado Cash?
Tornado Cash was sanctioned by the US Office of Foreign Assets Control (OFAC) for lacking controls to prevent malicious actors from using the protocol for money laundering. The protocol was allegedly used to launder over $7 billion since 2019.
What was the outcome of Alexey Pertsev’s court case?
Alexey Pertsev was found guilty of money laundering by the s-Hertogenbosch Court of Appeal in May 2024 and was sentenced to five years in prison. However, he has recently received a supervised release to prepare for an appeal.
What is the Ethereum Foundation’s viewpoint on privacy and writing code?
The Ethereum Foundation, including its founder Vitalik Buterin, believes that privacy should be a norm and that writing code should not be seen as or equated with criminal activity.
