Tornado Cash developer Alexey Pertsev has been remanded in detention pending trial. However, Pertsev said his spirit is not broken, and he will continue to try to prepare for an appeal. In his post on X, he mentioned he said he will fight for justice.
The crypto community has supported Pertsev, with users on X showering him with words of support. Meanwhile, others are sending financial help in his fight for justice. One notable donation is the 50 ETH he received from MolochDAO CEO Ameen Soleimani. Soleimani also noted that he is willing to donate the same amount to help Pertsev pay case costs and fight the allegations.
Tornado Cash’s operations unaffected by US sanctions
Tornado Cash was sanctioned by the United States Department of the Treasury’s Office of Foreign Asset Control (OFAC). OFAC claimed the crypto mixing platform was sanctioned due to money laundering charges. According to its statement, the platform has carried out this act since its launch in 2019, laundering about $7 billion.
One notable laundering act, according to the OFAC, was helping daredevil North Korean group Lazarus to launder stolen $455 million. Despite the sanctions, the platform has continued to operate, boasting a current value locked of over $600 million and a market capitalization of $13.14 million, per data from DefiLlama.
The platform has also continued to receive millions monthly. Last month, it recorded deposits worth $176 million while processing withdrawals of $72.92 million. Flipside Crypto put the platform’s total deposit in 2024 at $2.8 billion while withdrawals at $1.3 billion.
Congress members want a detailed explanation from OFAC
Members of the House of Representatives wrote a letter to the OFAC on November 14, seeking details about its investigation of the platform. The seven Democrats wanted to know why the platform was still in operation despite the sanctions. The letter was addressed to the Secretary of the Treasury Janet Yellen.
The group demanded why the sanctions did not put the platform out of business since it was announced in 2022. “We write to request additional information about the ongoing use of the cryptocurrency mixing service Tornado Cash after sanctions were imposed in 2022,” the letter said.
The group, headed by anti-crypto Congress member Brad Sherman highlighted frustrations surrounding Tornado Cash’s continued operations. The letter noted that other sanctioned centralized platforms like Sinbad had been taken down, but Tornado Cash is still operating. The group highlighted the resurgence in deposits and withdrawals, noting the involvement of fraudsters, and other bad actors.
They ended the letter by asking the agency to answer several questions including how many illicit transactions the platform had facilitated, if the agency was going to sanction people using the platform, and if the department had the necessary tools to ensure the sanctions were effected. The department has been instructed to provide answers to these questions by December 2.