Developers could be punished for code created to commit crime, says Dutch regulator
Netherlands’ Fiscal Information and Investigation Service (FIOD), which arrested a Tornado Cash developer on Aug. 12, said that developers could be held responsible if they created a code for the “sole purpose” of committing a crime or facilitating criminals.
The FIOD’s statement, provided to DeFi Education Fund, was posted by the advocacy group on Twitter on Aug. 17.
New info from the Netherlands agency that arrested tornado cash developer Alexey Pertsev
We wanted to get this *troubling* statement from the FOID out there (which raises more questions than it answers) while we're chasing down more info + assessing next steps
h/t @sccanavos pic.twitter.com/qbJK4F49vR
— DeFi Education Fund (@fund_defi) August 17, 2022
The FIOD has not released the name of the arrested developer. However, it is largely speculated that the arrested developer was Alexey Pertsev, according to the claims of his wife Ksenia Malik.
The FIOD had previously told the DeFi Education Fund that the arrested Tornado Cash developer was suspected of obscuring criminal money flow and facilitating money laundering.
The regulatory agency’s comments could have far-reaching implications for all software developers, who could be held responsible for potential illicit uses of their software, the Defi Education Fund said.
In an exclusive quote to CryptoSlate, the DeFi policy and advocacy group said:
“Tornado Cash was routinely used for legitimate purposes. While we are still waiting for the specific charges against the developer to be released, one thing must remain clear. Writing and publishing code must be protected in free societies and privacy is not a crime.”
Trouble everywhere
Cryptocurrency mixer service Tornado Cash was sanctioned by the U.S., following which the decentralized organization (DAO) behind the project had to shut down. The decision to shut the DAO was taken to protect contributors, even developers outside the Tornado Cash ecosystem, a contributor to the mixer previously told Cryptoslate.
Crypto exchanges have rushed to block addresses associated with Tornado Cash following the sanction.
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