Developer of the coin-mixing system Tornado Cash, Alexey Pertsev, was found guilty based on a terrifying interpretation of criminal culpability that could have wider implications for the cryptocurrency industry. Given that Pertsev was found guilty by the Dutch court, he will now serve a five-year, four-month term for using Tornado Cash to launder money. This is true even if Pertsev was not directly involved in the money laundering. He met with litigator Andrew Balthazor of Holland and Knight to discuss the verdict’s ramifications.
According to Balthazor, “Mr. Pertsev’s conviction supports the opinions of multiple governments that software developers who make their software accessible to the public will be held accountable for the predictable outcomes of the public’s use of that software.” It is not a defense under this theory of culpability to deny knowledge of a particular illegal act or to argue that the program has technical flaws that preclude criminal actors from abusing it. In addition, It is the duty of the software developer to design safeguards against anticipated illegal usage of their product.”Yes, that appears to be the position of the U.S. as demonstrated by the Tornado Cash indictments brought domestically by the DoJ – [Department of Justice],” Balthazor responded when asked if the U.S. was among the governments holding that view. This reading of liability is very different from most people’s conventional understanding of it. He spoke with Natalia Latka, director of public policy and regulatory affairs at blockchain analysis company Merkle Science, about the evolution of the hypothesis.
Software engineers were traditionally viewed as impartial producers of platforms and tools, in charge of their technical operation but not their application, according to Latka. This viewpoint was primarily influenced by the notion that technology is neutral in and of itself and that users’ intentions determine how they utilize it. Particularly in light of the emergence of decentralized networks that pose a threat to established regulatory frameworks, this viewpoint has been changing. Developers “must now consider the legal implications and potential misuse of their creations,” according to Latka.