Tuesday’s verdict in the trial of Alexey Pertsev, a creator of crypto-privacy service Tornado Cash, is the first in a string of cases that could make it much harder to skirt financial surveillance.
In the fall of 2020, as crypto scammers and thieves began to realize the full potential of a financial privacy tool called Tornado Cash—a clever new system capable of shuffling users' funds to cut the trail of crypto transactions recorded on the Ethereum blockchain—Alexey Pertsev, one of the creators of that service, sent a note to his fellow cofounders about this growing issue.
“The Tornado Cash smart contracts could be accessed directly at any point of time,” Cheng told an audience at the ETHDam cryptocurrency conference in Amsterdam last year. “Implementing checks within the surrounding infrastructure is akin to adding extra locks to a door that lacks surrounding walls.” The prosecution points out that Tornado Cash could have at least tried to put locks on that door, given that the vast majority of their users, both legitimate and criminal, were walking through it.
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