Tornado Cash developer Alexey Pertsev will remain in Dutch custody until February after being identified as a flight risk and slammed with a new money laundering charge.
Coinbase's Chief Legal Officer Paul Grewal said the sanctions "set a dangerous precedent" and claims it will have a chilling effect on software development.
OFAC said that The Lazarus Group used Tornado Cash to launder and steal digital currencies. The Treasury Department would also continue to pursue mixers laundering "virtual currency for criminals."
Despite protests from the likes of Kraken’s Jesse Powell and Uniswap’s Hayden Adams, Tornado developer Alexey Pertsev was denied bail in the Netherlands.
The recently arrested software developer behind the Tornado Cash ‘coin mixer’ reportedly has links to Russia’s top security agency, adding yet another layer of controversy to an already sketchy ‘crypto’ service.