Tornado Cash Developer Was Convicted and jailed

[DiMarxist]

Tornado Cash Developer Was Convicted and jailed

I got an email message from freedom.Tech that Alex Pertsev who was the developer of the "Ethereum based privacy tool called Tornado Cash" has been in court for sometimes and today And he was "he was sentence 5 years in imprisonment for creating a decentralized cryptocurrency project. The government is seriously attacking the decentralized cryptocurrency projects. Is it that the cryptocurrency activities are affecting the economy of the world?
Full details in quote

In an unprecedented court case, Alex Pertsev, a key developer of an Ethereum-based privacy tool called Tornado Cash was sentenced today to over five years in prison as a result of his work on the project. The sentence handed down was the maximum requested by the prosecutors, and marks the first conviction of a developer who built a decentralized privacy tool for cryptocurrencies.

The ruling itself, translated from Dutch to English, is a disturbing and insightful view into the mind of the Dutch government and many governments across the world today. https://uitspraken.rechtspraak.nl/details?id=ECLI:NL:RBOBR:2024:2069

Tornado Cash refresher
For those new to Tornado Cash as a tool, it is a decentralized, smart-contract-based privacy tool for Ethereum. It allows users to generate a Tornado Cash-specific private key (called a "secret note"), deposit their funds to the smart contract using this private key, and then withdraw their funds at any future time using this private key. Upon withdrawal, all links between past and future history are broken using a Zcash-like privacy protocol.

[muncuss]

He is sentenced and jailed by the US government. Nothing new here, US govt always like this before.
If i ever have a crypto business i'll make sure to filter out US citizen. Nothing personal, it is just that US govt is like a feral animal lol

[3la9l_kolbaCa]

Tornado Cash Developer Was Convicted and jailed

I got an email message from freedom.Tech that Alex Pertsev who was the developer of the "Ethereum based privacy tool called Tornado Cash" has been in court for sometimes and today And he was "he was sentence 5 years in imprisonment for creating a decentralized cryptocurrency project. The government is seriously attacking the decentralized cryptocurrency projects. Is it that the cryptocurrency activities are affecting the economy of the world?
Full details in quote

In an unprecedented court case, Alex Pertsev, a key developer of an Ethereum-based privacy tool called Tornado Cash was sentenced today to over five years in prison as a result of his work on the project. The sentence handed down was the maximum requested by the prosecutors, and marks the first conviction of a developer who built a decentralized privacy tool for cryptocurrencies.

The ruling itself, translated from Dutch to English, is a disturbing and insightful view into the mind of the Dutch government and many governments across the world today. https://uitspraken.rechtspraak.nl/details?id=ECLI:NL:RBOBR:2024:2069

Tornado Cash refresher
For those new to Tornado Cash as a tool, it is a decentralized, smart-contract-based privacy tool for Ethereum. It allows users to generate a Tornado Cash-specific private key (called a "secret note"), deposit their funds to the smart contract using this private key, and then withdraw their funds at any future time using this private key. Upon withdrawal, all links between past and future history are broken using a Zcash-like privacy protocol.

On the government with strict policies with regards restrictions against money laundering, I think they're keeping an eye on every foot steps of digital currency projects. Business like this should comply the rules and regulations to avoid future lawsuit, and I believed these crabs will pull and grab them down as scenario gets worst.

[Odusko]

 No longer News that privacy in the cryptocurrency space is a thing of the past, with various government taking a strong stance against privacy it will be hard for any decentralised projects most especially those that seek to protect users privacy will be taken down and term as tool for money laundering.
This is not only happening in the US alone but other countries around the world, regulations is the most important thing right now for the government and in doing that, their pick decentralised projects as the main enemy on target.

[AmoreJaz]

He is sentenced and jailed by the US government. Nothing new here, US govt always like this before.
If i ever have a crypto business i'll make sure to filter out US citizen. Nothing personal, it is just that US govt is like a feral animal lol

They are strict in implementing their laws so to speak. So if you want to avoid trouble, better select your jurisdiction as well as your customers. It is not being picky or selective but you just want your dealings outside the prying eyes of authorities. But of course, you still need to comply with the legalities of business in your area.
This is why if you noticed, a lot of crypto-related businesses such as exchanges or gambling sites are not licensed by US but by other parties, which I think, is easier to comply with. And if they do penetrate the US market, they understood the legal docs that they need to complete. Also, you will observe that some businesses have clear protocols on their terms not to include US citizens on their services.

[ryzaadit]

-snip-

What do u expect.

Their service provider is mixing service, most of the mixing services even in bitcointalk already being restricted. US always targeting every mixing service provider, because as always the service is being using for mixing coing/asset from any kind crime activity.

It's hard things to do, for mixing service.

[Yudhisthir]

-snip-

What do u expect.

Their service provider is mixing service, most of the mixing services even in bitcointalk already being restricted. US always targeting every mixing service provider, because as always the service is being using for mixing coing/asset from any kind crime activity.

It's hard things to do, for mixing service.

Mixing services are mostly helpful for people trying to launder money. Making the illegal money white. The mixtures allow the flagged coins to go unrecognizable.
Money laundering in crypto is mostly done by hackers who extort money in crypto or people that have illegal business like narcos. Mixing is also used to fund terrorism without being linked to. All these things are disliked by government. Business and people needs to go through the government channel if they want to launder their money and government won't allow its money laundering monopoly to be contested.

[yazher]

No longer News that privacy in the cryptocurrency space is a thing of the past, with various government taking a strong stance against privacy it will be hard for any decentralised projects most especially those that seek to protect users privacy will be taken down and term as tool for money laundering.
This is not only happening in the US alone but other countries around the world, regulations is the most important thing right now for the government and in doing that, their pick decentralised projects as the main enemy on target.

Yeah! right, that's why people who are involved in some crimes regarding their usage of cryptocurrency especially money laundering or anything else that is illegal and they currently reside in the US should be very careful not to cause any trouble by making noises in order to expose their names in public like any of these guys does nowadays, getting interviewed and ask about your personal crypto experience, especially about your involvement in the very first stage of cryptocurrency are now becoming a taboo because the government will be after you once they find out you are one of those guys who managed to acquire lots amount of bitcoins in its early years. they do anything to take those assets from you in the name of so-called laws.

[Kelward]

No longer News that privacy in the cryptocurrency space is a thing of the past, with various government taking a strong stance against privacy it will be hard for any decentralised projects most especially those that seek to protect users privacy will be taken down and term as tool for money laundering.
This is not only happening in the US alone but other countries around the world, regulations is the most important thing right now for the government and in doing that, their pick decentralised projects as the main enemy on target.

I can't blame the US government on their stance against decentralized projects, it's a good cause for them to protect against money laundering, some of which  goes into sponsoring terrorism and illegal activities. The tornado cash developer, should have known what he was up against before going into the development of a decentralized privacy project, I guess he must be an informed person and won't claim ignorance of the law. Normally cryptocurrency promotes privacy, but due to the fact that criminals and terrorists have hyjacked it for illegal activities, then I personally don't blame any governments that will wield the big hammer on offenders.

[bittraffic]

He is sentenced and jailed by the US government. Nothing new here, US govt always like this before.
If i ever have a crypto business i'll make sure to filter out US citizen. Nothing personal, it is just that US govt is like a feral animal lol

As a developer of a mixing service, he publicized himself to be known to the world, which makes him a target. Even the Russian government may imprison him as well. That's the very mistake he made.

This I think is a warning to all who have plans to develop such services, he should remain as anonymous as possible.  This is not why he is jailed however but because of the money laundering.

[makishart]

Tornado Cash Developer Was Convicted and jailed

The government is seriously attacking the decentralized cryptocurrency projects.

The hell are you talking about? Decentralized? Are you supporting people who facilitated so many criminals to laundering their billions of money? There are thousands of people's life savings there. It's kinda stupid to talk about decentralization when it's harmed many people.

They deserved it. It was not even attacking. Tornado cash deserved it. It shall be 100 years rather than only 5 years.

Is it that the cryptocurrency activities are affecting the economy of the world?

How can you believe if it was not impacting the world's economy?

A panel of judges in the Netherlands has found Alexey Pertsev, one of the developers behind crypto anonymizing tool Tornado Cash, guilty of money laundering.

Over the course of two days in March, the Russian national was tried on the allegation that the tool he developed had allowed criminals—among them hackers with ties to North Korea—to freely launder $1.2 billion in stolen cryptocurrency. “The management of Tornado Cash welcomed the bank robbers with open arms,” the prosecutors wrote in a March court filing.

https://www.wired.com/story/tornado-cash-developer-found-guilty-of-laundering-crypto/

How can't billions of money stolen by the hackers affect the world's economy. Do you forget about micro and macro economic?

[Bureau]

The US is after privacy cryptocurrency or anything that hides crypto transaction. They are not after crypto in general otherwise they wouldn't had allowed an ETF. They are concerned that they won't be able to control or track privacy centric projects. That is the reason why they went after Bitcoin mixers and now they are doing the same to mixers that were created for Ethereum.

Edit: I found out that the real reason for him to go to prison was that he was caught for money laundering.

[m2017]

This precedent that happened is nothing more than a warning on the part of U.S. government to all potential developers and creators of services for anonymizing transactions of crypto currencies. Anyone who creates a similar service like Tornado Cash will suffer persecution and the fate of Alex Pertsev. U.S. government will be able to get them even outside their jurisdiction and even citizens of other countries. This is an attempt on the part of the government to intimidate the crypto community not to create privacy tools for cryptocurrencies.

There is only one conclusion: the creators of any similar tools will be forced to remain anonymous. It was not in vain that Satoshi took care of hiding his person, right.

[btc78]

On the government with strict policies with regards restrictions against money laundering, I think they're keeping an eye on every foot steps of digital currency projects. Business like this should comply the rules and regulations to avoid future lawsuit, and I believed these crabs will pull and grab them down as scenario gets worst.

Governments these days attempt to get all projects that promote privacy and decentralization shut down. Not because they do not comply to their rules and regulations but because they are threatened of what these projects could do. I think it is a little unfair to shut down a project with no clear disobedient intentions.

We could accept a ruling if they truly did something illegal however I feel like if this was just a precautionary measure then we should be concerned.

[Velemir Sava]

The US is after privacy cryptocurrency or anything that hides crypto transaction. They are not after crypto in general otherwise they wouldn't had allowed an ETF. They are concerned that they won't be able to control or track privacy centric projects. That is the reason why they went after Bitcoin mixers and now they are doing the same to mixers that were created for Ethereum.

I think the public should not be confused anymore by conditions like this and the government comes when everything is running. It seems that more and more will be highlighted by the government regarding transactions that are privacy and considered to deviate from the regulations they apply. I think the tug-of-war about this policy will lead to a slowdown in price movements as well as BTC adoption in general.

[CoinMin3r]

This precedent that happened is nothing more than a warning on the part of U.S. government to all potential developers and creators of services for anonymizing transactions of crypto currencies. Anyone who creates a similar service like Tornado Cash will suffer persecution and the fate of Alex Pertsev. U.S. government will be able to get them even outside their jurisdiction and even citizens of other countries. This is an attempt on the part of the government to intimidate the crypto community not to create privacy tools for cryptocurrencies.

There is only one conclusion: the creators of any similar tools will be forced to remain anonymous. It was not in vain that Satoshi took care of hiding his person, right.

So satoshi proved he was right for being anonymous, otherwise he would also had been arrested for creating crypto named digital currency challenging traditional physical currency. But for sure US government is going after every thing promoting anonymizing privacy part.

[muncuss]

He is sentenced and jailed by the US government. Nothing new here, US govt always like this before.
If i ever have a crypto business i'll make sure to filter out US citizen. Nothing personal, it is just that US govt is like a feral animal lol

As a developer of a mixing service, he publicized himself to be known to the world, which makes him a target. Even the Russian government may imprison him as well. That's the very mistake he made.

This I think is a warning to all who have plans to develop such services, he should remain as anonymous as possible.  This is not why he is jailed however but because of the money laundering.

Oh i just noticed it is open source. Well yeah that is bad decision.
Seems like people who develop things for privacy will always need to be anonymous, as there are criminals who want to use the product (at least this is what the govt believe) and then they suddenly in court even if they are not the criminal themselves

[Jawhead999]

he was sentence 5 years in imprisonment for creating a decentralized cryptocurrency project.

It's incomplete, it should be "decentralized privacy tool project".

If creating decentralized project is a crime, the government wouldn't accept Bitcoin and put Satoshi Nakamoto on the wanted list.

So satoshi proved he was right for being anonymous, otherwise he would also had been arrested for creating crypto named digital currency challenging traditional physical currency. But for sure US government is going after every thing promoting anonymizing privacy part.

Bitcoin was created to not challenge against fiat, Bitcoin has exist for 15 years and still counting, but as we can see Bitcoin didn't taking fiat's place as the most preferred currency to use for daily needs.

[Tipstar]

He is sentenced and jailed by the US government. Nothing new here, US govt always like this before.
If i ever have a crypto business i'll make sure to filter out US citizen. Nothing personal, it is just that US govt is like a feral animal lol

As a developer of a mixing service, he publicized himself to be known to the world, which makes him a target. Even the Russian government may imprison him as well. That's the very mistake he made.

This I think is a warning to all who have plans to develop such services, he should remain as anonymous as possible.  This is not why he is jailed however but because of the money laundering.

Oh i just noticed it is open source. Well yeah that is bad decision.
Seems like people who develop things for privacy will always need to be anonymous, as there are criminals who want to use the product (at least this is what the govt believe) and then they suddenly in court even if they are not the criminal themselves

Even though Alexey Pertsev is arrested, his contribution would keep on helping create a free financial system. The decentralized, non-custodial and open source nature of Tornado cash means it would keep on working and hundred of its clones can be made. It was a bad idea for him to reveal his true identity. He might have thought Netherlands is a better place but it's just a puppet of the US. The judiciary is neither free nor independent and there's no hope for him to get justice unless he provides the US with loopholes in the system.

[Abiky]

Tornado Cash Developer Was Convicted and jailed

I got an email message from freedom.Tech that Alex Pertsev who was the developer of the "Ethereum based privacy tool called Tornado Cash" has been in court for sometimes and today And he was "he was sentence 5 years in imprisonment for creating a decentralized cryptocurrency project. The government is seriously attacking the decentralized cryptocurrency projects. Is it that the cryptocurrency activities are affecting the economy of the world?
Full details in quote

In an unprecedented court case, Alex Pertsev, a key developer of an Ethereum-based privacy tool called Tornado Cash was sentenced today to over five years in prison as a result of his work on the project. The sentence handed down was the maximum requested by the prosecutors, and marks the first conviction of a developer who built a decentralized privacy tool for cryptocurrencies.

The ruling itself, translated from Dutch to English, is a disturbing and insightful view into the mind of the Dutch government and many governments across the world today. https://uitspraken.rechtspraak.nl/details?id=ECLI:NL:RBOBR:2024:2069

Tornado Cash refresher
For those new to Tornado Cash as a tool, it is a decentralized, smart-contract-based privacy tool for Ethereum. It allows users to generate a Tornado Cash-specific private key (called a "secret note"), deposit their funds to the smart contract using this private key, and then withdraw their funds at any future time using this private key. Upon withdrawal, all links between past and future history are broken using a Zcash-like privacy protocol.

It's a sad day in the history of crypto. Who would've thought developing a decentralized mixing protocol would bring the attention of mainstream governments (particularly, the US government)? After all, only crypto funds are mixed. Not Fiat. Governments shouldn't have jurisdiction on this.

Unfortunately, Tornado.Cash developers made a mistake by revealing their identities. Now they're paying the price of what they did. Satoshi was smart by staying anonymous during Bitcoin's early days. He knew what was coming beforehand. If all other developers followed Satoshi's footsteps, crypto land would be a better place. Luckily for us, Tornado.Cash and similar mixing protocols are decentralized. If one goes down, another one will take its place. Expect government opposition to keep up for as long as crypto lives.