Federal prosecutors allegedly withheld pivotal evidence from the court during the case against the developer of Tornado Cash. The lawyers for the developer argue this withholding of evidence jeopardizes the fairness of the trial.
U.S. Court Allegations Against Tornado Cash Founder Roman Storm Over Withheld Evidence
Roman Storm, the founder of cryptocurrency mixer Tornado Cash, is facing accusations of prosecutorial misconduct by withholding critical, exculpatory evidence. Storm was arrested in 2023 on charges related to allegedly laundering $1 billion in criminal funds, including hundreds of millions for the North Korean cybercrime group Lazarus.
In addition to the charge of laundering proceeds, Storm was initially accused of operating an unregistered money-transmitting business. However, this part of the indictment was dropped earlier this month in accordance with a DOJ memo that discourages digital asset "regulation by prosecution." Prosecutors still pursue the remaining charges against Storm.
Now, Storm's legal team alleges that the government has been withholding information since 2023 regarding the claim that non-custodial crypto mixers can act as money transmitters. According to a recent filing in a similar prosecution involving Samourai Wallet, a non-custodial cryptocurrency mixer, U.S. prosecutors disclosed a previously undisclosed call with senior Financial Crimes Enforcement Network (FinCEN) officials stating that because Samourai did not possess the private keys to any stored crypto addresses, the service was not acting as a money services business (MSB).
The defense argues that the failure to disclose these documents could constitute a Brady violation and materially prejudice Storm's defense. A Brady violation consists of a prosecutor's failure to disclose pertinent evidence that would help a defendant's case. brady_violations can result in conviction reversals, mistrials, charge dismissals, or prosecutorial misconduct charges.
Storm's trial is scheduled for July 14th. The ongoing case questioned the legal liability of developers in the crypto space and sets precedents for decentralized platforms and their founders.
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The allegations against Roman Storm, the founder of Tornado Cash, point to potential Brady violations by the U.S. government due to withheld evidence regarding the legal status of non-custodial crypto mixers. This case could set a precedent for decentralized platforms and their founders, questioning their legal liability, especially in the financial realm. Interestingly, the crypto industry is bustling with news of new developments, such as token sales, game creation platforms, and institutional integrations, showcasing the continuous growth and evolution of cryptocurrency and blockchain.
