The United States government’s ban on virtual currency mixer Tornado Cash in 2022 sounded the alarm in the cryptocurrency market. The US Treasury Department’s Specially Designated Nationals and Blocked Persons List has sanctioned Tornado Cash, an Ethereum-based coin mixer (SDN). The restriction now prohibits US investors from using the coin-mixing service’s chain for illegal purposes.
According to the US Department of Treasury, the measure went into effect on August 8, 2022. The Tornado Cash developer was arrested for money laundering and was set to remain in jail until the end of February.
Also read: Cryptocurrency Investors May Have to Pay Tax for Their Frozen Funds
Tornado Cash developer to spend jail time after Wednesday hearing
According to the Dutch judges, Pertsev is likely to seek to hide evidence or flee if released on bail. However, he denied all the charges, and the next hearing will be held in April. Pertsev is also set to remain in jail after Wednesday’s hearing.
“We had the opportunity to explain what the basis is for Tornado Cash and why it is not money laundering. It is our opinion that the lack of knowledge is what’s keeping him here, “ Pertsev’s lawyer Keith Cheng told CoinDesk.
Also read: FTX in Talks for Return of $400 Million Investment, Customers File Class Action Lawsuit
When the news first broke, the sanctioning of the cryptocurrency mixer was thought to be the end of Web3.