Alexey Pertsev, a developer of Tornado Cash, has been released from prison custody and placed under house arrest as he prepares his legal appeal. His case has drawn significant attention from the crypto community and privacy advocates worldwide.
Court Suspends Pretrial Detention
On Feb. 6, a Dutch court ruled to suspend Pertsev’s pretrial detention, which began in August 2022 and was extended in November 2024. While he remains under electronic monitoring, Pertsev acknowledged that house arrest is a better alternative to prison.
His arrest has sparked concerns among digital privacy advocates, who argue that prosecuting developers of privacy-focused tools sets a dangerous precedent for the future of decentralized technology.
Money Laundering Conviction and Tornado Cash Sanctions
In May 2024, the ‘s-Hertogenbosch Court of Appeal found Pertsev guilty of money laundering and sentenced him to five years and four months in prison. Despite the ruling, many in the crypto space pointed out that Tornado Cash developers have no control over the transactions processed through the protocol.
Pertsev’s legal troubles began in August 2022, the same month the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash. Officials claimed the platform had facilitated over $7 billion in illicit transactions since its launch in 2019, including $455 million allegedly laundered by North Korea’s Lazarus Group.
However, in November 2024, the U.S. Fifth Circuit Appeals Court ruled that OFAC had overstepped its authority in sanctioning Tornado Cash’s immutable contracts. This decision was reinforced in January 2025 when the U.S. District Court for the Western District of Texas overturned the Tornado Cash sanctions, marking a significant moment for digital privacy and regulatory policy in the United States.
These legal battles will likely shape the future of decentralized privacy tools and how regulators approach blockchain-based financial services.
