Table content
Overview
- Attorney Judith de Boer emphasized that Pertsev’s appeal highlights the importance of EU privacy regulations.
- The Tornado Cash situation is examining whether legislation applies to smart contracts.
- A recent U.S. decision has unsettled the foundations of the Tornado Cash matter.
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Since Dutch authorities accused Alexey Pertsev of enabling money laundering via Tornado Cash, the case has centered around a critical inquiry.
Who should be responsible for possible misuse of decentralized systems?
This is the central issue for Pertsev’s attorney, Judith de Boer.
She represents the 31-year-old programmer, contending that the Dutch court erred in May when it determined that he unlawfully permitted criminals to utilize the crypto mixer.
Defense of the Programmer
Throughout the spring trial, Pertsev defended himself by stating that Tornado Cash is a platform based on Ethereum that anonymizes cryptocurrency transactions through smart contracts, effectively functioning independently.
He does not dictate who accesses the platform—the choices are made by software algorithms. The Dutch judges rejected his defense and sentenced him to more than five years in prison.
Advocates for privacy have vehemently criticized this verdict. Now, de Boer’s challenge is to convince the appeals court that the judges misinterpreted the law.
“European privacy regulations safeguard financial privacy rights, and Tornado Cash was established as a decentralized system to uphold this tenet,” de Boer informed DL News.
“The defense claims this constitutes a misapplication of the law and intends to contest it in the appeal.”
The situation in the United States emphasizes the rightful application of protocols by individuals.”
— Judith de Boer, attorney
Interestingly, 31-year-old Peercy was granted bail last week while he awaits his appeal, along with unexpected backing from a U.S. court.
In November of the previous year, a court of appeals in New Orleans determined in a civil matter concerning Tornado Cash that the government had improperly utilized national security regulations to impose sanctions on the platform in 2022.
The court pointed out that the legislation applies to individuals and corporate bodies, not “immutable smart contracts.” It mandated that the case be returned to a lower court for additional scrutiny.
Consequently, in January, the government’s Office of Foreign Assets Control (OFAC) announced it would not challenge this decision. Advocates of Tornado Cash celebrated the ruling as an “unquestionable triumph.”
Currently, attention turns to Peercy’s ongoing appeal, along with his associate Roman Storm, who is set to face a criminal trial in U.S. court in April.
Legitimate Application
While Peercy’s situation does not directly involve OFAC sanctions, as it relates to Dutch legislation, de Boer conveyed her gratitude for the U.S. court’s decision.
“The U.S. case highlights the rightful application of protocols by individuals and reinforces their decentralized character,” remarked de Boer, a partner at Hertoghs in Amsterdam.
Regarding Peercy, he obtained bail last week while waiting for his appeal, having been refused it in July. He quickly urged supporters to contribute to his cause.
“Freedom is invaluable, but my liberty has come at a significant cost,” Peercy mentioned on the X platform.
Edward Robinson serves as the story editor for DL News. Reach the author at: [email protected].
