Alexey Pertsev, the developer behind the OFAC-sanctioned crypto mixer Tornado Cash has been denied bail while his lawyers prepare to submit an appeal for charges of money laundering. 

Pertsev’s defense lawyer, Keith Cheng, told DL News the rejection of Pertsev’s bail request came as a surprise, noting that an additional request for Pertsev to gain access to a computer to prepare for his appeal was also denied.

The court said Pertsev's continued detention would not obstruct his ability to prepare his defense, adding that Pertsev's request for computer access went against its safety protocol. 

Pertsev's lawyer Judith de Boer disagreed with the court's decision, saying that pre-trial detention in a case involving "such fundamental" legal questions is was "unacceptable."

“This unprecedented case addresses when a software developer can be criminally liable for third-party misuse,” added de Boer.

Pertsev was found guilty of money laundering in the s-Hertogenbosch Court of Appeal in the Netherlands on May 14.

The developer was sentenced to five years and four months in prison for allegedly laundering $1.2 billion worth of illicit assets on the platform.

The July 13 decision marks the third time Pertsev’s request for bail has been denied.

Earlier, in November, a Dutch court denied the developer’s plea to be released under surveillance based on the prosecution’s argument that Pertsev posed a flight risk.

The prosecution argued that Pertsev acted as a central figure in Tornado Cash’s operation. The developer’s bail was denied again in February.

An X account affiliated with JusticeDAO, the organization that deals with raising funds for the legal defense of the Tornado Cash developers said the ruling was a “gross miscarriage of justice” in a July 12  post to X

Related: Crypto community backs Tornado Cash devs with $2.3M legal fund

“Alexey will spend the next year in jail while his legal team prepares for the appeal hearing. This is a gross miscarriage of justice. Developers do not belong in jail for the actions of third parties,” wrote the account.

Tornado Cash developer Alexey Pertsev denied bail while awaiting appeal image 0 Source: Free Pertsev and Storm

During his March trial, Pertsev argued that he could not be held liable for the actions of those who used the Tornado Cash protocol for nefarious or illegal purposes.

The court rejected this argument, saying that if Pertsev and the two other co-founders of Tornado Cash had truly wanted to prevent criminals from abusing the protocol, they would’ve taken further measures with their protocol to ensure this did not occur.

Magazine — ‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters