Tornado Cash Dev Convicted: Privacy Tech on Trial as Crypto Grapples With Regulation

Another crypto builder falls to the regulators' hammer—but the war over financial privacy rages on.

The Verdict That Shook DeFi

A Dutch court just handed down a partial guilty verdict against Tornado Cash developer Alexey Pertsev, marking a pivotal moment for privacy tools in crypto. The mixed ruling leaves more questions than answers about where code ends and liability begins.

Privacy vs. Policing

Prosecutors framed the Ethereum mixer as a criminal money-laundering pipeline, while defenders argued it's neutral infrastructure—the crypto equivalent of a VPN. The court split the difference, convicting on one count while leaving other charges unresolved.

The Chilling Effect

Developers worldwide are watching closely. This case could set precedent for whether writing open-source code constitutes aiding illicit activity—a nightmare scenario for decentralized finance. Meanwhile, Treasury officials are probably popping champagne with their banking lobbyist buddies.

The irony? Traditional finance launders more money before lunch than crypto does in a year. But try explaining that to politicians cashing Big Finance's campaign checks.