The trial of Roman Storm, co-founder of Tornado Cash, is generating interest as the judge considers excluding references to sanctions during proceedings.
Exclusion of Tornado Cash Sanctions
Judge Katherine Failla of the US District Court for the Southern District of New York indicated she would likely exclude mentions of the August 2022 sanctions imposed on Tornado Cash. She noted that these sanctions were later repealed. In 2022, the OFAC added addresses linked to Tornado Cash to its sanctions list, alleging their use in illicit transactions. However, these sanctions were withdrawn in March following a federal judge's order to repeal them after a civil case filed by Tornado Cash users. Judge Failla remarked that introducing this issue would imply Storm had 'consciousness of guilt' for actions ultimately not upheld by the courts.
Links to North Korea Persist
While the judge appears ready to exclude the withdrawn sanctions, she indicated she would not grant a motion to prohibit references to North Korea or the Lazarus Group, a hacking collective accused of laundering stolen funds through Tornado Cash. Prosecutors have cited these connections as part of their case against Storm, who was indicted in August 2023 on charges of money laundering, conspiracy to operate an unlicensed money transmission business, and conspiracy to violate US sanctions. The trial is scheduled to begin on Monday, with Judge Failla expected to finalize rulings on witness testimonies beforehand.
Crypto Community Support for Roman Storm
The case against Storm has sparked a wave of support from the crypto industry, with prominent figures arguing that 'writing code is not a crime.' Ethereum co-founder Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation have collectively contributed thousands of dollars to Storm’s legal defense fund ahead of the trial. If it proceeds as planned, Storm’s trial will be closely watched, following the high-profile convictions and sentencing of figures like former FTX CEO Sam Bankman-Fried, former Binance CEO Changpeng Zhao, and former Celsius CEO Alex Mashinsky. The crypto community views this case as a critical test of developer liability amidst other major enforcement actions.
The trial against Roman Storm presents a significant moment in the narrative of crypto regulation and developer accountability, drawing attention from law enforcement and the crypto community alike.
