Tornado Cash dev Alexey Pertsev granted conditional release after months in custody

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Key Takeaways

Alexey Pertsev, a developer linked to Tornado Cash, has been released conditionally under electronic monitoring as he faces money laundering charges.
The case raises issues of privacy-focused crypto tool regulation and developer liability amid ongoing legal challenges.

Alexey Pertsev, a Tornado Cash developer, will be released from pretrial detention on February 7 under electronic monitoring conditions, according to his social media post.

Dear Friends, on Friday 7 February at 10 am I will be free! It is not real freedom, but it is better than prison. Today, a Dutch court suspended my pretrial detention under the condition of electronic monitoring. This will give me a chance to work on my appeal and fight for…

— Alexey Pertsev (@alex_pertsev) February 6, 2025

Pertsev faces money laundering charges related to his involvement with Tornado Cash, a crypto mixing service that was sanctioned by the US Treasury Department’s Office of Foreign Assets Control in August 2022.

The Treasury alleged the platform was used to launder over $7 billion in digital assets, including $455 million stolen by North Korea’s Lazarus Group.

The case has sparked debate over developer liability and regulation of privacy-focused crypto tools.

Dutch prosecutors argued that while Tornado Cash operated as a decentralized protocol on Ethereum, its creators maintained control through a centralized web interface used by most users.

The crypto community has rallied behind Pertsev, with organizations like JusticeDAO raising funds for his legal defense. His case highlights tensions between privacy-preserving technologies and anti-money laundering regulations in the crypto sector.

You can donate fiat to Roman’s fund, Alexey’s fund, or the General Fund via JusticeDAO:

— Free Pertsev & Storm (@FreeAlexeyRoman) October 8, 2024

Last May, Ethereum co-founder Vitalik Buterin donated 30 ETH to the Tornado Cash legal defense and worked on developing a regulation-compliant crypto mixer.

In November, a federal appeals court found the Treasury’s sanctions on Tornado Cash unlawful, stressing limits on government regulatory power over decentralized technologies.

A US appeals court later ruled that OFAC’s sanctions on Tornado Cash exceeded regulatory authority, adding another layer of complexity to the ongoing legal proceedings.

The fallout from the sanctions affected many users who found their funds locked or were blocked from exchanges due to previous interactions with sanctioned addresses.