Alleged developer of Tornado Cash was arrested for “money laundering”

Written by ebookingservices

The effect of the United States sanctions against Tornado Cash seems to claim its first victim. Authorities in the Netherlands announced the arrest of what they claim is an Ethereum mixer developer.

The Netherlands Tax Information and Investigation Service known as FIODarrested a 29-year-old man in the city of Amsterdamfor suspecting that he is involved in “hiding criminal financial flows and facilitating money laundering.”

“These advanced technologies, such as decentralized organizations that can facilitate money laundering, are receiving special attention from the FIOD,” notes a release of the FIOD.

The most recent sign of opening given by its developers was to make open source its user interfacewhich makes it auditable and can be verified for vulnerabilities.

As reported by CriptoNoticias, this is an application that allows to hide the history of coins and tokens of the ethereum network. Tornado Cash is open source, which makes it a tool that anyone can use, either for legal or illegal activities.

In this case, the US sanctions against the protocol for alleged money laundering with cryptocurrencies, seems to be the trigger for the arrest of the alleged developeralthough the police do not rule out that it is the only procedure they can carry out.

In this regard, the lawyer and legal specialist in cryptocurrencies, Cris Carrascosa, commented who is “very curious” about how FIOD is going to prove the accusations. In his opinion, encoding or having a deposit is not money laundering or committing a crime. “We are about to see very creative legal arguments coming from regulators.”

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