Developer of cryptocurrency mixer Tornado Cash suspected of cooperation with Russian FSB

Alexei Pertsev, the developer of the sanctioned cryptocurrency mixer Tornado Cash, has been linked to the Russian Federal Security Service, according to a report by the Kharon intelligence company.

on August 8, the US Treasury Department imposed sanctions on Tornado Cash. The agency claims that hacker groups, including the North Korean Lazarus Group, used the service for money laundering. Two days later, the Dutch government arrested Pertsev on suspicion of «involvement in the concealment of criminal financial flows and facilitation of money laundering.» However, the international community supported Pertsev, saying that the US government was unreasonably harassing the open source software developer.

Law enforcement officials note that the story of the cryptomixer developer is much more complicated than what the public is discussing. According to Kharon, back in 2017, Pertsev worked as a smart contract developer and information security specialist at the Russian company Digital Security. In 2018, the US Treasury Department accused Digital Security of providing technological and material support to the FSB. Nick Grothaus, vice president of research at Kharon, said: «This guy worked for Digital Security and tested the software himself, and then the Treasury Department accused the company of helping the FSB with hacking attacks.»

Alex Zerzen, a senior fellow at the Center for a New American Security, comments on the situation: «This opens up a lot of credibility issues for the developers of Tornado Cash. It becomes clear why the US government and the Dutch authorities took action against the cryptocurrency mixer developer. It seems that there is a more complex and intricate picture that will take more time to uncover.»