Crypto: Tornado Cash Developer Released Under Conditions!

The crypto universe remains a legal battleground where technology and law clash mercilessly. Alexey Pertsev, a prominent figure in the Tornado Cash mixing protocol, has just taken a key step: released under electronic surveillance after eighteen months of detention, he is preparing his appeal. A bittersweet victory. For while the Dutch jails open slightly, the Russian developer remains shackled by an electronic bracelet, a symbol of freedom under control. His case, more than just a judicial fact, embodies the burning tensions between decentralized innovation and legal responsibility.

Tornado Cash vs Justice: a battle on multiple fronts

On February 7, 2024, Alexey Pertsev left his cell, but not the gaze of the authorities. Sentenced in May 2024 to five years and four months in prison for money laundering, he obtained a suspension of his pretrial detention. “This is not real freedom,” he declared on X, reminding that electronic surveillance limits his movements. This comes after the lifting of sanctions against Tornado Cash.

But why such severity? The Dutch court believes that Pertsev should have anticipated the criminal uses of Tornado Cash. A reasoning contested by the developer: “I do not control what users do with the code,” he argues.

Yet, the Dutch justice system remains unyielding. It rules that the founders of the protocol neglected necessary safeguards.

Tornado Cash, a non-custodial tool, mixes cryptocurrencies to enhance anonymity. But between 2019 and 2022, more than one billion dollars of illicit funds were funneled through it, according to the FBI.

A flaw exploited by hackers, including the notorious Lazarus group, linked to North Korea. Pertsev, arrested in August 2022, is now paying the price of a borderless innovation… but also one without filters.

The judicial storm is not limited to the Netherlands. In the United States, Roman Storm, co-founder of Tornado Cash, awaits his trial in April, released on a $2 million bail.

His accomplice, Roman Semenov, is on the run and wanted by the FBI. The sanctions imposed by the U.S. Treasury against Tornado Cash, lifted in January 2024, did not calm the spirits. Storm denounces a “terrifying criminalization of privacy.” A cry of alarm for the entire industry.

Open-source code vs regulators: the domino effect

Behind the lawsuits lies a burning question: can a developer be prosecuted for the actions of their users? Tornado Cash, like most decentralized protocols, functions without intermediaries.

Its code, open and automated, escapes any centralized control. “Prosecuting Pertsev is like holding an architect responsible for crimes committed in a building he designed,” summarizes a lawyer specializing in crypto.

The consequences are already palpable. Michael Lewellen, an independent developer, sued the DOJ in January 2024. He fears being indicted in turn for publishing similar software. “If writing open-source code becomes a crime, innovation will come to a halt,” he warns.

A fear shared by thousands of contributors: according to GitHub, 30% of blockchain developers are now hesitant to work on privacy-related tools.

Yet, hope remains. By lifting the Treasury sanctions against Tornado Cash, a U.S. court recognized that the OFAC had “overstepped its powers.”

A historic decision, welcomed by advocates of digital freedoms. But the battle is far from won. Regulators on both sides of the Atlantic are doubling efforts to frame a technology they deem too powerful, too opaque.

Developers are calling for a clear distinction between tool and use. Regulators, on the other hand, demand guarantees. In between, the crypto ecosystem navigates murky waters. Meanwhile, the Trump administration wants to regulate stablecoins to strengthen the dollar.