A federal judge overseeing the criminal trial of Roman Storm, co-founder and developer of Tornado Cash, has ruled that jurors will be allowed to hear testimony suggesting Storm could have made modifications to the platform to deter criminals from using it.
In a recent order, Judge Katherine Failla denied a defense motion to exclude testimony from a government witness regarding potential modifications Storm could have implemented on Tornado Cash.
The witness, Philip Werlau, an investigator at AnChain.AI, a fraud investigation and Anti-Money Laundering compliance company, will testify that Storm had the capability to prevent Tornado Cash from facilitating money laundering through its smart contract features but chose not to take action.
Judge Failla stated, “Such testimony is permissible,” noting that even though a specific feature like a “user registry smart contract” may not have been utilized in the blockchain industry, Werlau can still discuss its feasibility and Storm’s knowledge as a software developer.
Part of Judge Failla’s Sunday order denying a motion from Roman Storm’s lawyers. Source: PACER
Storm’s trial, which entered its sixth day on Monday, involves charges of money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate US sanctions related to his involvement with Tornado Cash. The prosecution expects to conclude its case by Friday, after which Storm’s defense will present its arguments.
To date, the government has presented testimony from various witnesses, including hackers who allegedly used Tornado Cash for illicit fund laundering, as well as an FBI forensic accountant and special agent. Testimony from Joel DeCapua, an FBI supervisory special agent, indicated that large sums of money had been laundered through Tornado Cash in multiple incidents.
Implications for Storm’s Future
Storm’s co-founder, Alexey Pertsev, faced a similar trial in the Netherlands for money laundering linked to Tornado Cash and received a prison sentence of over five years. Storm’s case in the US, however, may yield a different outcome. Judge Failla referenced other crypto-related cases, such as those of Sam Bankman-Fried, Karl Greenwood, and Nathaniel Chastain, who were all sentenced to prison.
Jury selection for Storm’s trial commenced on July 14, with the proceedings expected to last three to four weeks according to Storm.
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