2024

David

Tornado Cash

Tornado

A federal judge has approved a delay in Tornado Cash co-founder Roman Storm’s trial, pushing the proceedings from September to December 2nd.
Judge Katherine Polk Failla from the Southern District of New York granted the postponement due to various legal complexities that require careful examination
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 Judge Failla has GRANTED Roman Storm's motion to delay his criminal trial for operating Tornado Cash. New trial date is December 2. Full writeup of a very interesting hearing coming soon.— David Z. Morris, PhD (@davidzmorris) <a href="https://twitter.com/davidzmorris/status/1811811501914685785?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 12, 2024</a>
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The decision is part of an ongoing legal dispute over Tornado Cash, a crypto-mixing company co-founded by Storm. Initially, Storm’s defense team asked for a trial starting in January 2025 to allow enough time to review evidence and prepare a defense.&nbsp;
However, Judge Failla chose early December for the case, emphasizing well-prepared trials and timely proceedings.
The controversial aspect of the case is on whether Roman Storm can be held accountable for the actions of Tornado Cash users. The Prosecutors argue that Storm and his co-founders have taken steps to prevent criminal activities such as blocking transactions with criminal entities. But the defense counters that Storm lost control of Tornado Cash after May 1st, 2020, and that its smart contracts cannot be altered.
Defense attorney Brian Klein noted the unique nature of the case, calling it the first-ever money laundering trial where the defendant has no control over the funds in question. Assistant U.S. Attorney Thane Rehn countered that in such a situation, any legitimate business must take necessary measures to prevent criminal activities.
The hearing also addressed several motions regarding evidence and procedures. The defense requested communications between U.S. and Dutch investigators related to the arrest of Alexey Pertsev, a Tornado Cash developer. These documents are said to be crucial, but the prosecutors objected on diplomatic grounds, claiming irrelevance.
Additionally, the court discussed the extent of search warrants and seizures of digital currencies. The defense sought limits on the government’s ability to seize Storm’s on-chain crypto wallets, arguing that tokens on the blockchain cannot be seized from private keys found during a residential search.
Judge Failla is expected to rule on various motions, including those related to discovery, crypto wallet searches, and potential charges dismissal. She also expressed concerns about holding software developers accountable for how their creations are used, comparing it to applications like WhatsApp.
The judge questioned the implications of making developers liable for criminal activities linked to their software. Prosecutors argued that while the First Amendment protects WhatsApp’s activities, the same does not apply to financial transactions through Tornado Cash.
In a related case, Alexey Pertsev was recently denied release by a Dutch court. Pertsev was convicted of money laundering and <a href="https://www.cryptotimes.io/2024/05/14/dutch-court-sentenced-tornado-cash-developer-for-64-months/" rel="noopener noreferrer nofollow">sentenced to over five years</a> in prison for his role in laundering stolen and hacked cryptocurrency through Tornado Cash.
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Judge Postpones Tornado Cash Co- founder’s Trial to December

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