Alexey Pertsev, the developer of the Tornado Cash cryptocurrency mixer, previously worked for a company associated with the Federal Security Service (FSB) of the Russian Federation. Reported by Fortune with reference to the report of the analytical company Kharon.

Today @FortuneMagazine Included Kharon’s last piece on sanctions #cryptocurrency mixer #TornadoCash And how did its developer – Alexey Pertsev – once work at a designated company to provide support? #RussiaFSB.https://t.co/p2Uy96Z5GO

— Kharon (@KharonData) 26 August 2022

8 August OFAC It has confirmed the Tornado Cash website and its associated 39 Ethereum and 6 USDC addresses. According to the agency, since the service was created in 2019, attackers have laundered more than $7 billion in cryptocurrencies with its help. Some of the funds are linked to the North Korean hacker group Lazarus Group.

On August 12, law enforcement in the Netherlands arrested the developer of Tornado Cash on suspicion of money laundering and hiding criminal financial flows through a mixer. Later it became clear that we were talking about 29-year-old Pertsev.

The actions of the authorities caused a resonance in the global crypto community, which worried about the attack in the field of open source software. A rally in support of Pertsev was held in Amsterdam, and Cardano founder Charles Hoskinson spoke out in defense of the Tornado Cash developers.

However, the newspaper states that national security experts believe the public is not fully aware of the reasons for the sanctions imposed by the US government.

According to Kharon’s report, the mixer uses software developed by TraxSec Corporation, registered in Delaware. Pertsev is the founder and CEO.

In 2017, he worked as an information security and smart contract specialist at Digital Security LLC. In 2018, the Ministry of Finance of the Russian Federation commissioned the company to provide material and technical support to the FSB since 2015.

This man worked [в “Цифровой безопасности”] and he himself did tests to overcome it. And then the Ministry of Finance appointed the company as an assistant to the FSB on hacking,” said Nick Grothaus, vice president of research at Kharon.

According to Alex Zerden, senior fellow at the Center for a New American Security, the facts “raise major credibility issues with Tornado Cash developers.”

“This is pretty in-depth information that explains why the US government and Dutch authorities have taken certain steps,” he said.

Zerden noted that the data from Kharon contrasted sharply with the reaction of the crypto community and only suggested “the bad intentions of the authorities.”

Earlier, industry advocacy organization Coin Center said that OFAC overstepped its mandate in the event of sanctions against the mixer. Jess Powell, CEO of Kraken cryptocurrency exchange, said the regulator’s actions were unconstitutional and violated citizens’ right to privacy.

Congressman Tom Emer wrote a letter to US Treasury Secretary Janet Yellen requesting clarification on the Tornado Cash restrictions.

There are many reasons, justifications, and respects for how OFAC should define it. [санкционные] businesses,” says Zerden.

Grothaus acknowledged that Kharon’s findings did not prove any underlying reason for the regulator’s actions against Tornado Cash.

“It seems there is a more complex and complex picture that will take more time to resolve,” he said.

Recall that OFAC added the Blender crypto mixer to its sanctions list in May, which did not cause a noticeable reaction in the community.

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