Alexey Pertsev is again on remand for the next 3 months without charges over his contribution to the Tornado Cash platform.
Tornado Cash is a Crypto mixing platform, a protocol to intermix the crypto transactions to make it hard to trace the crypto transactions. This platform was initially launched in Dec 2019 through the collaborative efforts of Roman Semenov, Alexey Pertsev, and Roman Storm. In Q3 2022, The United States Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash citing misuse of the platform in money laundering activities. After the OFAC sanction, Tornado Cash developer Alexey Pertsev was arrested by Dutch authorities.
As per the latest Dutch court ruling, Alexey will remain in detention till the next hearing which is scheduled to be held on 21 April 2023.
According to a report from TheBlock, The court of East Brabant in Holland has also scheduled a pre-trial review for May 24.
Alexey has been under the Dutch authorities’ custody since 112 days and currently, he is not facing any criminal charge but he is on remand on behalf of a provision in Dutch law.
Money laundering via Tornado Cash
Tornado Cash is a fully neutral crypto mixing tool, which can be used to remain anonymous in the crypto sector. Because of the decentralized & neutral nature of this platform, bad actors also use this platform to launder money.
Over the last few years, Tornado Cash was used to launder nearly $7 billion in funds, including $455 million worth of crypto assets stolen by the popular North Korean hacker group Lazarus.
Initially when the OFAC agency imposed sanctions on Tornado Cash then at that time many crypto proponents including Cardano founder Charles Hoskinson, and Ethereum co-founder Vitalik Buterin jumped in support of this crypto mixing platform and suggested imposing restrictions on bad actors instead of the platform.