Cryptocurrency Market News: Tornado Cash Developer Sentenced to Over 5 Years in Prison
This past week, a major conviction occurred in a crypto technology case, as a developer of privacy-preserving software was convicted for money laundering in the Netherlands. The CEO of digital asset manager Grayscale also resigned, and a report suggested the crypto industry could have a bigger political impact than ever through lobbying efforts.
Tornado Cash developer Alexey Pertsev was reportedly convicted of money laundering by a Dutch judge on Tuesday, and received a 64-month prison sentence.
An indictment revealed that between July 9, 2019, to Aug. 10, 2022, Pertsev consistently engaged in money laundering, and ignored suspect origins of illicit transactions on Tornado Cash.
Following the verdict, the 31-year-old Russian was taken into custody. Pertsev can appeal the sentence, but the time he has already spent in detention since his arrest in August 2022 will not be deducted from his prison term.
The case may influence upcoming trials of other Tornado Cash developers, including Roman Storm and Roman Semenov, who also face money laundering and sanctions violations charges in the U.S.
Grayscale CEO Michael Sonnenshein is stepping down, according to a release Monday.The company said Sonnenshein, who played a key role in the launch of spot Bitcoin exchange-traded funds (ETFs), is leaving the company to «pursue other interests.»
Goldman Sachs Head of Strategy for Asset and Wealth Management Peter Mintzberg will take over the role on August 15. Mintzberg brings over 20 years of experience from roles at BlackRock, OppenheimerFunds, and Invesco. Until Mintzberg steps in, Grayscale CFO Edward McGee will serve as interim CEO.
Barry Silbert, CEO of Grayscale parent Digital Currency Group, praised Sonnenshein's leadership
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