Tornado Cash developer Alexey Pertsev’s fate in a Dutch court on Tuesday disappointed some in the cryptocurrency industry, but some say the law in the U.S. could have different results for other developers later this year.
According to the ruling, the Dutch court convicted Pertsev, 31, laundered $1.2 billion in cryptocurrency through the Tornado Cash mixer. A three-judge panel sentenced Pertsev to five years and four months in prison.
In its final conclusion, the court said, “The court considers that it has been legally and convincingly established that the accused, along with others, is guilty of ether laundering from the offenses included in the indictment and that he has been in the habit of doing such laundering.”
This comes as the US trial of Tornado Cash co-founder Roman Storm is scheduled to begin on September 23. Last year, U.S. prosecutors indicted co-founders Storm and Roman Semenov on charges of conspiracy to launder money, conspiracy to violate sanctions and conspiracy. The act of operating an unlicensed money transfer business. Semenov was still a big figure at the time of his indictment.
Storm’s attorney filed the following motion: fire The charges, including filing a First Amendment defense that writing code could be considered free speech. Cryptocurrency groups including Coin Center, Blockchain Association, and DeFi Education Fund applied. amicus briefs It supported the motion last month and said the government’s indictment contained numerous factual and legal errors. Next, the judge decides whether to dismiss the case.
A spokesperson for the DeFi Education Fund said they were disappointed with the outcome of the Pertsev case in the Netherlands, but that this should not affect the US case against Storm.
“As we argued in our previously filed opinion in the Roman Storm case, the government’s theory of liability for this prosecution is unprecedented,” a fund spokesperson said in an emailed statement. “The indictment alleges that a software developer who creates open source, general-purpose software may be subject to third-party malicious actors using that software years after the software was created, without direct or active intervention between the developer and the malicious user. Actors will be held criminally responsible.”
“This is simply not the law of the United States,” they added.
higher bar
“Tuesday’s ruling should not have any impact on Storm’s case because the underlying criminal law between the courts is very different,” Peter Van Valkenburgh, director of research at Coin Center, told The Block. said.
The United States, for example, has a different intent requirement and the negligence standard for money laundering is not as low, Van Valkenburgh said.
Dutch and American laws also vary in terms of constitutional law, he said.
“When you talk about people being held criminally liable for posting software or posting on websites, First Amendment issues are at stake.” Van Valkenburgh said.
That doesn’t mean it’s impossible for the government to charge someone with a crime, he added.
“You generally don’t find protections for speech and expression in other countries as strong and as regularly protected as the U.S. constitutional system,” Van said. Valkenburg said.
Netherlands and beyond
van Valkenburgh said he was angry and saddened after Pertsev’s ruling.
“My first reaction was that I was sad that Alexei was found guilty and was likely going to go to prison for some time,” he said.
van Valkenburgh warned there could be legal implications for software developers in the Netherlands and across Europe.
“With the lack of a clear ruling until now, it was unclear how widely the standard could be expanded, or how much of a risk it would be, especially for developers in the EU or the Netherlands. This ruling confirms that the standard can indeed be very expanded.” “I think so, at least in Dutch criminal law.”
The Blockchain Association said it plans to protect developers in the U.S. and around the world.
“Rights to the code should be available to all software developers,” Marisa Coppel, the group’s legal director, said in an emailed statement. “At the Blockchain Association, we will continue to champion and defend the rights of developers in the United States and around the world,” she said.
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