News
Tornado Cash developer sentenced to over 5 years in prison
Key points
- Tornado Cash developer Alexey Pertsev has been convicted of money laundering by a Dutch judge, in a case that could have implications for others.
- Grayscale CEO Michael Sonnenshein, who played a key role in launching Bitcoin exchange-traded funds, will step down, while Goldman Sachs’ Peter Mintzberg will take over the role.
- The cryptocurrency industry is reportedly stepping up its lobbying efforts in Washington, with the aim of influencing the upcoming US elections.
- US lawmakers are expected to soon vote on a bill that major cryptocurrency companies including Coinbase say could be crucial to the future of the US cryptocurrency industry
A major conviction in a crypto technology case occurred last week, as a privacy software developer was convicted of money laundering in the Netherlands. The CEO of digital asset manager Grayscale has also resigned, and a report suggests the cryptocurrency industry could have a bigger political impact than ever through lobbying efforts.
Tornado Cash developer Alexey Pertsev sentenced to over 5 years in prison
Tornado Cash Developer Alexey Pertsev was reportedly convicted of money laundering by a Dutch judge on Tuesday and received a 64-month prison sentence.
An indictment revealed that between July 9, 2019 and August 10, 2022, Pertsev consistently engaged in money laundryand ignored the suspicious origins of illicit transactions on Tornado Cash.
Following the verdict, the 31-year-old Russian was arrested. Pertsev can appeal the sentence, but the time he has already spent in detention since his arrest in August 2022 will not be deducted from his prison sentence.
The case could influence upcoming trials against other Tornado Cash developers, including Roman Storm and Roman Semenov, who face charges of money laundering and sanctions violations in the United States
Grayscale CEO Michael Sonnenshein steps down
Grayscale CEO Michael Sonnenshein will step down, according to a statement released Monday. The company said Sonnenshein, who played a key role in the launch of Bitcoin spot exchange-traded funds (ETFs).he leaves the company to “pursue other interests”.
Peter Mintzberg, head of strategy for asset and wealth management at Goldman Sachs, will take up the role on August 15. Mintzberg brings more than 20 years of experience at BlackRock, OppenheimerFunds and Invesco. Until Mintzberg steps in, Grayscale CFO Edward McGee will serve as interim CEO.
Barry Silbert, CEO of Grayscale’s parent company Digital Currency Group, praised Sonnenshein’s leadership in transforming the Bitcoin Trust into an ETF. Earlier this year, Grayscale was among the firms that successfully listed a spot Bitcoin ETF in the US after challenging repeated denials from the Securities and Exchange Commission (SEC).
Cryptocurrency Industry Steps Up Lobbying Efforts
The cryptocurrency industry is stepping up its lobbying efforts in Washington, with the aim of influencing the upcoming US elections, CoinDesk reported.
By investing heavily in pro-crypto candidates, the industry hopes to make progress in creating a more favorable regulatory framework. Specifically, focused on cryptography political action committees (PACs) like Fairshake have raised significant funds to support candidates in solidarity with cryptocurrencies. These efforts have already had an impact on key races, helping to thwart the re-election of Congresswoman Katie Porter, who has been critical of cryptocurrencies.
Fairshake also contributes to party-affiliated PACs such as Defend American Jobs and Protect Progress, and supports both Republican and Democratic candidates who support cryptocurrency-friendly policies.
What to expect from the markets this week
US lawmakers are preparing for a vote on the Financial Innovation and Technology for the 21st Century Act (Fit21), deemed crucial by major cryptocurrency firms for the future of the US cryptocurrency industry.
Fit21 aims to establish safeguards against risky behavior and ensure consumer protection in cryptocurrency custody and bankruptcy cases by providing clearer guidelines for the industry. The upcoming vote could also determine whether the Commodity Futures Trading Commission (CFTC) will become a major regulator of cryptocurrencies and will delineate its jurisdiction from that of the SEC.
The Crypto Council for Innovation, which includes industry giants like Coinbase (CURRENCY), Kraken and Andreessen Horowitz, wrote a letter last week supporting the bill, highlighting the importance of the legislation to support the growth of digital assets and maintain U.S. leadership in financial innovation.