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Tornado Cash Dev in Jail, Hints of Crypto Mixer Comeback Despite Regulators’ Hate

27. February 2023 /

• Alexsey Pertsev, the developer of crypto mixing service Tornado Cash, remains in jail after being charged with money laundering.
• Ameen Soleimani, co-founder of SpankChain and Reflex Labs, recently hinted at a possible comeback for Tornado Cash.
• The U.S. Department of Treasury previously imposed sanctions on Tornado Cash for facilitating the laundering of millions by the Lazarus Group.

Tornado Cash Developer in Jail

Alexsey Pertsev, developer of crypto mixing service Tornado Cash, remains in jail after facing money laundering charges. The U.S. Department of Treasury had previously imposed sanctions on the service for facilitating the laundering of millions by North Korea-backed hacking conglomerate Lazarus Group.

Hints of a Comeback

Ameen Soleimani, co-founder of SpankChain and Reflex Labs, recently suggested that the crypto mixing service could soon make its comeback despite the legal woes its developer is facing. His tweet presented an image which showcased Privacy Pools v0 as a “sequel to Tornado Cash” developed “by Ameen Soleimani” on “behalf of MolochDAO” – one of the leading decentralized autonomous organizations (DAO).

MolochDAO Funds

MolochDAO was initiated early 2019 aimed at helping manage and coordinate funds intended for Ethereum core development. Joseph Lubin from ConsenSys announced that MolochDAO succeeded in raising more than USD 1.5 million worth ETH from various blockchain industry players such as ConsenSys, Ethereum Foundation and Vitalik Buterin – Ethereum’s co-founder.

Positive Reactions

Soleimani’s announcement has triggered a wave of mostly positive reactions on social media with users wishing him well and advising him to protect himself amidst his efforts to revive the crypto mixer service amid legal troubles faced by its developer – Pertsev who is currently scheduled to attend a hearing next April .

Why Regulators Hate Crypto Mixers?

Crypto mixers employ techniques to conceal origin used cryptos which has attracted attention from regulators alleging it facilitates money laundering activities as seen with US government sanctioning Tornado cash over $7 billion worth virtual currency laundered since 2019 including $455 million stolen by Lazarus Group.