The Fiscal Info and Investigation Service (FIOD) has confirmed that the arrested Twister Money developer was suspected of being concerned within the hiding of legal monetary transactions and facilitating cash laundering.
On Aug. 12, Alexey Pertsev was arrested within the Netherlands in connection to Twister Money. A non-profit coverage advocacy group, DeFi Fund Schooling reached out to the authority to substantiate the idea for the arrest.
In response, the FIOD acknowledged that the developer was arrested for his involvement in facilitating cash laundering by means of the Twister Money protocol.
FIOD simply adopted up with extra info on the Twister Money developer who was arrested final week.
We’ll hold sending updates as they arrive in. https://t.co/FPu2wMvTSK pic.twitter.com/vpn2aBYRyZ
— Sam Canavos (@sccanavos) August 16, 2022
The company famous that its investigation in opposition to the developer was impartial of the US sanction. It nonetheless refused to call the arrested developer.
The Block had reported Aug. 12 that the arrested Twister Money developer was Alexey Pertsev, in line with his spouse Ksenia Malik.
Twister Money on the run
FIOD’s arrest of the developer and the US sanction has left the Twister Money ecosystem in disarray.
Strain from the sanction pressured the DAO to close down operations on Aug. 13.
In an unique report with CryptoSlate, a group member confirmed that the multi-sig was deleted after DAO funds have been moved to the governance contracts. Commenting on why the protocol needed to take the route, the Twister Money member acknowledged:
“To maintain members protected and keep away from authorized points” because the scenario is “harmful for all devs,” even these outdoors the Twister Money ecosystem.
No going again for the US Treasury
The US Treasury had earlier acknowledged it could pursue in any case crypto mixing protocols with no Know Your Buyer (KYC) modalities. Crypto mixing protocols by design are decentralized, making it troublesome to implement a KYC mannequin.
The US Treasury believes that unregulated mixers within the crypto trade will undermine the nationwide safety of the U.S. and is aggressively sanctioning protocols suspected of facilitating illicit funds.
“[The] Treasury will proceed to research using mixers for illicit functions and use its authorities to reply to illicit financing dangers within the digital forex ecosystem.”