Core Developer Arrested in Connection With Tornado Cash by Dutch Authorities

The Dutch Fiscal Information and Investigation Service (FIOD) has arrested a 29-year-old man who is suspected to be linked to ‘Tornado Cash’ money laundering activities. Specifically, he was picked up in Amsterdam on Friday. 

The Dutch government has been on the tail of Tornado cash after it was discovered to be assisting criminals to launder money. Since its inception, over $7 billion has been recorded to go through the crypto mixer.

Tornado Cash is a cryptocurrency mixer that helps to obscure the source of digital assets. It does this by mixing cryptocurrencies from different sources in a pool and then distributing them in a way that the source becomes unidentifiable.

Generally, individuals and organizations use mixers or tumblers to keep their transactions anonymous and enjoy privacy. Criminal actors perpetrate their illicit activities by utilizing these crypto mixers.

Due to these illicit activities, the crypto mixer was sanctioned by the United States Treasury Department a few days ago. The sanction was in agreement with the Executive Order against money laundering activities signed by the current president of the United States, Joe Biden.

Based on a statement by the agency, the perpetrators involved with Tornado Cash made huge profits from helping firms launder money. Bank assets and properties located in the U.S or in possession of citizens and residents of the U.S that belong to the crypto mixer were all confiscated. 

Growing OFAC List

Many other defaulters besides Tornado Cash has been added to the U.S Office of Foreign Assets Control (OFAC) list. This is along with 44 other associated Ethereum (ETH) and USDC wallets. The wallets identified included the smart contract that runs Tornado Cash and the Tornado Cash donation wallet.

According to the FIOD, several other arrests might be made apart from this one. The suspect is assumed to be the developer of the advanced technology used to facilitate money laundering. At first, his identity was undisclosed but it was suspected to be Alexey Pertsev. His identity was later confirmed by his wife.

After his meeting with the examining judge in the Den Bosch court, Alexey Pertsev will spend 14 days in custody.