Privacy Protocol Developer Fights Criminal Money Laundering Charges in Dutch Court
• Alexey Pertsev, the developer of the privacy protocol Tornado Cash, is facing money laundering charges in the Netherlands.
• A Dutch court has granted him permission to cross-question blockchain analytics company Chainalysis as he seeks to prove his innocence.
• Activists have protested the case, saying it poses a threat to open source coding and online privacy.
Tornado Cash Developer Facing Money Laundering Charges
Alexey Pertsev, the developer of the privacy protocol Tornado Cash, is facing money laundering charges in the Netherlands after being arrested and detained by Dutch financial crime enforcers FIOD in August 2020. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) had sanctioned Tornado Cash for allegedly being used by North Korean hackers to process and obscure funds for their regime. Activists have protested this case, saying it poses a threat to open source coding and online privacy.
Cross-Questioning Blockchain Analytics Company Chainalysis
Pertsev was granted permission by a Dutch court on Wednesday to directly ask Chainalysis in writing about its methods as he seeks to clear his name of money laundering charges. Pertsev’s lawyer Keith Cheng stated outside of court that they were “happy” with this ruling as it would allow them access to answers from Chainalysis which FIOD explanations had not been able to provide due its technical unsatisfactory nature.
Activist Reaction To The Case
Online rights activists have expressed concern over Pertsev’s case, arguing that it could pose a threat to open-source coding and online privacy if found guilty. In April 2021, Pertsev was released from detention but will still need to await trial from his home near Amsterdam with further updates expected in May or June 2021 when more evidence from both parties is presented at court hearings.
Implications For Privacy Protocol Developers
The implications of this case extend beyond just Alexey Pertsev himself as other developers are likely concerned about what repercussions they might face should they be accused of similar criminal activities involving their protocols or projects similarly associated with OFAC sanctioned entities or individuals deemed malicious actors using technologies for illicit activities such as money laundering or terrorism funding activities etc..
Chainalysis Response
Chainalysis did not immediately respond to a request for comment made by CoinDesk Managing Editor Nikhilesh De regarding what could happen next in terms of further investigations into this case or potential ramifications for other developers working on similar projects moving forward – especially those based outside U.S jurisdiction where sanctions may not apply equally across borders and jurisdictions .
