Tornado Cash Developer Accused in $1.2 Billion Laundering Case

Dutch indictment alleges Tornado Cash developer Alexey Pertsev's involvement in a $1.2 billion laundering case. The three-page document claims Pertsev was a co-perpetrator in laundering assets through the OFAC-sanctioned platform. Since his arrest in August 2022, Pertsev has dismissed the allegations of breaching money laundering laws. The latest indictment from the Netherlands claims Pertsev was involved in money laundering on Tornado Cash, referring to over 30 transactions deemed illegal, including one involving 175 $ETH linked to the Ronin Bridge hack. Pertsev is currently awaiting trial in the Netherlands, scheduled for March 26, on charges related to money laundering and additional financial offenses. Tornado Cash was once the top crypto coin mixing platform, allowing users to transact anonymously. However, in 2022, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) prohibited US citizens from using the service, claiming it facilitated the laundering of over $7 billion in crypto, including $455 million suspected to have been pilfered in 2022 by the Lazarus Group, a hacking entity linked to the North Korean government. In addition to Pertsev, another Tornado Cash developer, Roman Storm, was accused of laundering more than $1 billion in illicit proceeds. Privacy advocates denounced OFAC’s move, but both individuals later received public support from Edward Snowden, the former NSA whistleblower. According to Chainalysis’ stats, the platform suffered a 93% decline in monthly cash inflows post-sanctions compared to pre-sanctions averages.