Alexey Pertsev, the developer of the Tornado Cash protocol, has been denied release by a Dutch court on July 12.
Convicted of money laundering in May and sentenced to over five years in prison, Pertsev remains in custody as he plans to appeal.
The Hertogenbosch Court of Appeal rejected his release, despite his lawyers arguing he was not a flight risk and needed internet access for his appeal.
The court maintained its stance due to the severity of the case, where Pertsev and his colleagues were found guilty of facilitating the laundering of $2.2 billion in stolen cryptocurrency.
This case, following US Treasury sanctions on Tornado Cash, has raised concerns about the liability of developers of privacy-focused open-source software. It highlights the tension between blockchain innovation and regulatory compliance.
Further legal challenges continue, with developer Roman Storm set to face trial in the US on similar charges in September.
BingX, a cryptocurrency exchange, has alerted users to a possible security breach involving its hot wallet, leading to the activation of emergency protocols.
In the next five years, government prosecutors and tax agencies are expected to utilize artificial intelligence to analyze blockchain data for crime detection, according to Chainalysis CEO Michael Gronager.
Germany has shut down 47 cryptocurrency exchanges, accusing them of enabling cybercriminals to launder money by ignoring anti-money laundering regulations.
In the wake of the $230 million hack at Indian crypto exchange WazirX, the attackers have moved another $12 million worth of Ethereum.