The court extended the pre-trial detention of Tornado cash producer Percev.
Alessi Percev's pre-trial detention is another sign of long-overdue concern for open source code developers, particularly privacy-protecting technologies.
Percev, the developer of cryptocurrency hybrid protocol Tornado Cash, will remain in jail pending trial, X announced in a November 21 post.
“Despite our best efforts, I am saddened to announce that the court has decided to extend my pre-trial detention. This decision greatly complicates my ability to prepare for an appeal, but I am determined to continue my fight for justice.
Pretrial detention is longer. Source: Alexey Pertsev
The decision comes amid growing regulatory interest around Pertsev's cryptocurrency hybrid protocol.
In the year On November 14, several US House of Representatives Democrats demanded answers from Treasury officials about what is being done about Tornado Cash, a crypto-mingling service that was approved in 2022 but is still in operation.
The lawmakers highlighted a “resurgence” in mixer usage this year, with Tornado Cash accepting $1.8 billion in deposits in the first half of 2024, a 45 percent increase over 2023.
RELATED: Tornado cashier Alexey Persev denied bail while preparing appeal.
The move to Tornado Cash and why it matters to privacy.
Percev remains behind bars on charges related to money laundering, although it is operating a non-custodial cryptocurrency mixing protocol.
Percev had the money transferred by a Dutch judge at the s-Hertogenbosch Court of Appeal on May 14. The developer was sentenced to five years and four months in prison for swindling illegal assets worth $1.2 billion on the platform.
As a non-strict crypto hybrid protocol, funds passing through Tornado Cash are never captured or monitored.
Despite having no control over the funds, the developer was arrested in the Netherlands in August 2022 and found guilty shortly after Tornado Cash was blacklisted by the US government.
During the March hearing, Percev argued that it could not be held liable for the actions of people who used the Tornado Cash protocol for malicious or illegal purposes.
The court rejected this argument, saying that if Percev and other Tornado Cash founders really wanted to prevent criminals from abusing the protocol, they would have taken additional measures to ensure security.
Related: Crypto-mixing ‘not a crime,' says CryptoQuant CEO
Perceive's legal battle raises concerns for developers of privacy-protecting technology.
According to Matthew Niemerg, founder and president of Aleph Zero, legally providing privacy protection features is essential for future privacy protocols.
Matthew Niemerg speaking to Cointelegraph. Source: Cointelegraph
Magazine: Tornado Cash 2.0: The Race to Build Safe and Legal Coin Mixers
