Tornado Cash developer Alexey Pertsev is released from prison

Alexey Pertsev was released from prison on February 7, 2025, and will remain under house arrest while preparing his legal appeal.
The U.S. Department of the Treasury sanctioned Tornado Cash in 2024, citing illicit fund laundering, despite developers having no control over transactions.
Pertsev’s release boosted TORN’s price by 15%, with the token gaining over 40% in the past month.

On February 7, 2025, Alexey Pertsev, the founder of Tornado Cash, was freed from prison after a few months.

Pertsev’s Release and Legal Battle

A Dutch court ruled that Pertsev’s pretrial detention must be terminated, but he will be under house arrest and electronically monitored. Most people who are concerned about privacy and cryptocurrency have been monitoring Pertsev’s case, viewing his release as a significant milestone in his ongoing court battle.

Pertsev had been in detention since 2022 for money laundering allegations involving Tornado Cash, a service that allows users to make anonymous transactions. Although Pertsev did not have control over the money going through Tornado Cash, he was arrested and subsequently sentenced to five years in prison because he allegedly did not stop illegal activities on the site.

His release followed a Dutch court terminating his pretrial detention, which was extended in November 2024. Pertsev stated that although the terms were strict. And he was grateful for the opportunity to prepare for his legal appeal outside of prison. In a social media post, he stated, “It is not real freedom, but it is better than prison.”

Freedom is priceless, but my freedom cost a lot of money. My house arrest was only possible thanks to the work of lawyers, who were paid from your donations. My fight is not over yet and for a final and confident victory I still need your help. Please support our fight here… pic.twitter.com/WT1eWhXhAi
— Alexey Pertsev (@alex_pertsev) February 7, 2025

Pertsev’s court case demonstrates the rising tension between government regulation and privacy software. Activists concerned with privacy are apprehensive about the case, asserting that it will harm developers of privacy-protecting software. Tornado Cash, a decentralized program utilized both for good and for bad, has been a focus of extensive legal attention.

U.S. Treasury’s Sanctions on Tornado Cash

In 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash. Which is asserting that more than $7 billion in dirty money ran through the program. The sanctions were unpopular since Tornado Cash is decentralized and the developers do not have the ability to command the transactions.

Pertsev’s case was vindicated when a U.S. court upheld Tornado Cash’s developers and overturned OFAC sanctions. This ruling marked a shift in the crypto world. That demonstrating a shift in the regulations of privacy software and unchangeable code.

Impact on the market

Pertsev’s release has impacted the market too. The TORN token price, the central token of Tornado Cash, rose 15% on his release day. The token rose 40% in the previous month, and some believe it could continue its upward trajectory with Pertsev’s case still ongoing. Encouragement by the crypto world, including Ethereum’s Vitalik Buterin, has driven the trend.