Tornado Cash Dev Pertsev's $1.2B Money Laundering Allegations Detailed Ahead of Dutch Trial

Sandali Handagama
2 min read
0
In this article:

Russian developer Alexey Pertsev is accused of laundering $1.2 billion worth of crypto through the anonymizing tool Tornado Cash, Dutch prosecutors detailed in an indictment shared ahead of his trial on March 26.

The indictment, seen by CoinDesk, says that between July 9, 2019 and Aug. 10, 2022, "at least in the Netherlands and/or in Russia and/or the United States and/or in Dubai, together and in association with one or more others, at least alone," Pertsev allegedly "made a habit of committing money laundering."

Tornado Cash developers Roman Storm and Roman Semenov also face allegations of money laundering and sanctions violations in the U.S. The charges detailed in the Dutch indictment against Pertsev align with allegations faced by Storm and Semenov in the U.S. Storm pleaded not guilty to the charges, and is set to go on trial this September. The U.S. has not yet been able to arrest Semenov.

Pertsev was jailed in the Netherlands in August 2022 on vague charges shortly after Tornado Cash was blacklisted by a U.S. sanctions watchdog for its alleged use by the North Korean regime. His arrest led to a public outcry, particularly from the developer community concerned that the accusations against Pertsev could set a dangerous precedent for incriminating software developers.

During 2023 hearings at a ‘S-Hertegonbosch court, Dutch public prosecutors said Pertsev was accused of routinely laundering more than 500,000 ether (ETH) of suspected criminal origin. Pertsev has denied these charges and was allowed by the court to await trial from home.

The indictment lists nearly 40 transactions coming up to 535,809 ETH originating from different platforms, including KuCoin and Liquid – an exchange that was acquired by FTX before its 2022 collapse. The largest listed sum of 175,100 ETH (around $585 million in today's prices) came from Axie Infinity's Ronin network, which saw around $625 million stolen in a 2022 exploit – one of the worst in crypto's history. The exploit has been blamed on the notorious hacker group Lazarus, with alleged ties to the North Korean government.

Pertsev and his associates should have at least suspected the funds' criminal origins, Dutch prosecutors allege.

"The origin and/or the movement hidden or concealed and/or hidden or concealed who is the owner(s) of the rights to the object(s) was/were and/or hidden or concealed by whom it(s) had/had object(s) available, while the suspect and/or his co-perpetrator(s) knew (each time), at least could reasonably have suspected that the object(s) were entirely or in part - directly or indirectly - came from any crime," the indictment said.

A legal fund for Pertsev and Storm's defense – supported by NSA whistleblower Edward Snowden – has raised $350,000.

Pertsev's trial will take place on March 26 and 27 at a ‘S-Hertegonbosch court.

CoinDesk has reached out to KuCoin for comment.

Advertisement

Recommended Stories

  • A New York Homeowner Was Arrested For Changing The Locks After Finding A Group Of Squatters In $1 Million Home She Inherited

    In Queens, New York, a homeowner's confrontation with unexpected occupants at her late father's house spiraled into a dramatic legal tangle that highlights the complex issue of squatter rights in the city. Adele Andaloro, 47, inherited a property valued at $1 million after her parents died. She discovered strangers living there during a visit to prepare the house for sale. When she changed the locks to secure the property, one of the occupants called the police, leading to her brief arrest. Thou

  • Owner of exploded Michigan building arrested at airport while trying to leave US, authorities say

    The owner of a suburban Detroit business that caught fire and exploded, killing a man, was arrested at a New York airport as he was preparing to depart for Hong Kong on a one-way ticket, authorities said Friday. U.S. Customs and New York Port Authority personnel arrested Noor Noel Kestou, 31, on Saturday at John F. Kennedy International Airport. Kestou, of Commerce Township, was arraigned Thursday on an involuntary manslaughter charge.

  • Deal averts strike at Daimler North America as UAW celebrates pact

    A possible strike by Daimler North America workers was averted at the last minute late Friday with a four-year deal. The post Deal averts strike at Daimler North America as UAW celebrates pact appeared first on FreightWaves.

  • Swindlers Are Now Using AI. Here Are the Warning Signs.

    Interactive deepfakes such as live phone calls or video conferences with what seems to be a real person are becoming more common.

  • United Auto Workers reaches deal with Daimler Truck, averting potential strike in North Carolina

    The United Auto Workers union announced it reached a last-minute tentative agreement with truck and bus manufacturer Daimler Truck, averting a potential strike of more than 7,000 workers. It covers workers at various plants in North Carolina — where Daimler makes Thomas Built Buses, Freightliner and Western Star trucks — as well as distribution centers in Atlanta and Memphis, Tennessee. In an online speech, UAW President Shawn Fain said the new contract includes wage increases of more than 25% over the next four years, including a 10% raise after the deal is ratified.

  • The economy is moving us back into the 19th century as fertility rates plunge

    The U.S. birth rate from 2023 was down 2% from 2022, according to the Centers for Disease Control and Prevention.

  • Millennium Slams Jane Street ‘Gamesmanship’ in Secrets Case

    (Bloomberg) -- Millennium Management accused Jane Street Group of playing games by not fully disclosing the proprietary trading strategy it claims was stolen by two former traders who joined Izzy Englander’s hedge fund group.Most Read from BloombergBHP’s $39 Billion Copper Play Was Years in the MakingFed Repricing Gives Rise to New Equities Playbook in AsiaApple Intensifies Talks With OpenAI for iPhone Generative AI FeaturesThe Long, Slow Death of Urban NightlifePlunging Home Prices, Fleeing Com

  • Temporary farmworkers get more protections against retaliation and other abuses under new rule

    Temporary farmworkers will have more legal protections against employer retaliation, unsafe working conditions, illegal recruitment practices and other abuses under a Labor Department rule announced Friday. The new rule, which takes effect June 28, will target abuses experienced by workers under the H-2A program that undermine fair labor standards for all farmworkers. California has a vast agricultural industry, growing over a third of the country’s vegetables and nearly three-quarters of the country’s fruits and nuts and attracting a large number of farmworkers.

  • Dow Jones Futures: Nvidia Leads 7 New Buys As Market Roars; Fed, Apple, Super Micro Loom

    Nvidia and several other leaders flashed buy signals as the market roared. Investors should take advantage, but it's a jungle out there.

  • Trump to set interest rates himself under secret presidential plan

    Donald Trump’s aides have drawn up secret plans to oust the chairman of the Federal Reserve and allow the president to set interest rates, according to reports.