The criminal trial of Tornado Cash co-founder Roman Storm is entering a critical phase, as prosecutors argue that Storm maintained control over funds linked to illicit crypto activity. U.S. authorities are now preparing to rest their case, while the defense prepares to challenge key evidence related to Storm’s alleged role in money laundering and sanctions violations.
IRS Agent Testifies on Wallet Control
On the eighth day of the trial, IRS Special Agent Stephan George testified that Storm had control over certain wallet addresses tied to Tornado Cash. This conclusion was drawn from an analysis of wallet transactions on Binance and Crypto.com, and internal communications between Storm and co-founders Alexey Pertsey and Roman Semenov.
The prosecution aims to prove Storm had the ability to manage or restrict access to Tornado Cash, raising questions of criminal liability.
This claim is critical to the government’s argument that Storm could have implemented controls to block or disincentivize illegal crypto flows through the platform.
Defense Pushes Back on Testimony
Storm’s legal team pushed to dismiss the testimony, particularly that of Hanfeng Lin, a previous victim who claimed stolen crypto was funneled through Tornado Cash. Defense attorneys argued Lin lacked qualifications to trace illicit funds, and even suggested that the funds may never have reached the platform at all.
“The accounting background of the witness doesn’t qualify him to make criminal attributions,” the defense argued in court documents.
They also hinted at a possible mistrial motion, citing inconsistencies in the government’s tracing analysis.
Prosecution Nears End of Case
Federal prosecutors expect to conclude their arguments by Thursday morning, leaving Storm’s attorneys to begin their defense. The defense is expected to call two or three doctors, potentially to address Storm’s mental or physical health, along with a possible Chainalysis expert to rebut the government’s claims on crypto tracing and wallet control.
Charges Could Set Precedent for Crypto Developers
Storm faces charges of:
- Money laundering
- Conspiracy to operate an unlicensed money transmitter
- Violation of U.S. sanctions laws
The outcome of this case could have wide-reaching implications for crypto developers and privacy tools in decentralized finance.
As the trial unfolds, the core issue remains: Did Roman Storm have control over Tornado Cash in a way that makes him criminally responsible for how others used the protocol?
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.