Tornado Cash Co-Founder Roman Storm Trial Progression: Court Rulings and Defense Strategy
Tornado Cash co-founder Roman Storm entered a more formal defense stage on Monday, though a federal judge ruled he cannot introduce “self-serving” evidence that included private messages expressing thoughts on cybercriminals’ use of the protocol.
Defence attorneys sought to introduce messages arguing Storm did not intend Tornado Cash for money laundering, a position explicitly stated in a letter to Judge Katherine Polk Failla. Failla disagreed, stating most messages didn’t illuminate Storm’s state of mind during protocol creation.
Prosecutors Charge Money Laundering, Sanctions Violations
Storm faces multiple felony charges including conspiracy to commit money laundering, operating an unlicensed money-transmitting business, and violating US sanctions, with a possible sentence exceeding four decades in prison.
Prosecutors emphasize Storm built Tornado Cash primarily for illicit purposes, labeling him a “money launderer’s primary target market.” The defence counters, stating Storm aimed for a privacy tool for blockchain users, powerless to stop criminals.
“I’m glad those fuckers are detected,” Storm allegedly stated upon learning North Korean hackers were traced using Tornado Cash.
Failla permitted Storm to enter the incriminating chat message but excluded other communications. Fundamentally, she ruled the conversations didn’t prove Storm’s intent when developing the alleged illegal protocol.
Storm previously cited compliance efforts, including implementing 97% of Chainalysis-sponsored anti-money laundering features, as early as April 2022. Failla labelled one exchange, where Storm sought guidance confirming legality, inconclusive of his intent.
Defense Technical Rebuttal
After three weeks of testimony, Storm called cryptography expert Matt Edman this week. Edman testified that while Storm updated defenses, their effectiveness was hampered by Tornado Cash’s decentralized storage on IPFS.
Edman also reported that 85% of Tornado Cash deposits between September 2020 and August 2022 were crypto unlinked to crime, rebutting prosecution portrayals.
Storm faces a decision on testifying, to be followed by closing arguments if he chooses not to. Up to six additional defence witnesses are expected.
