Alexey Pertsev, the developer of Tornado Cash, has been sentenced to five years in prison by a Dutch court for money laundering. This ruling has caused concern among the crypto and privacy communities as it challenges previous regulatory knowledge and sets a dangerous precedent for open-source and permissionless privacy tools. The court estimated that 84% of all transactions in Tornado Cash were non-criminal, leading experts to warn that most open-source protocols and applications could become a target following this ruling’s logic. Privacy advocates have voiced their concerns about the broader impact on privacy and online freedom, and the industry must navigate these new legal challenges carefully to protect privacy and foster innovation in the digital space.

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