No Additional Disclosure Required, Judge Rules
A federal judge has refused to order the Department of Justice (DOJ) to conduct a further review of its records in the case of Roman Storm, co-developer of Tornado Cash. The decision came after a brief 30-minute hearing held on Friday morning.
Storm is scheduled to face trial in July on charges related to the operation of Tornado Cash, a cryptocurrency mixer.
No Brady Violation Found Over FinCEN Conversations
During the hearing, Judge Katherine Polk Failla determined there was no violation of the Brady doctrine, a legal standard requiring prosecutors to share evidence that might help the defendant. The issue revolved around whether DOJ prosecutors had discussions with FinCEN (Financial Crimes Enforcement Network) about the licensing requirements for crypto mixers.
Prosecutors in a separate case involving Samourai Wallet had these discussions, but not those in Storm’s case.
The judge emphasized, “I don’t believe the material was exculpatory,” and added, “There’s a difference between ‘this is something I’d like to know’ and ‘this is a Brady violation.’”
Defense Seeks Clarity on Licensing Accusations
Storm’s legal team, led by Brian Klein, argued that they needed to know exactly when DOJ prosecutors learned of the FinCEN exchange, as the government continues to allege that Tornado Cash operated as an unlicensed money transmitting business.
Klein questioned, “Who are they supposed to be licensed with?”, pointing to confusion around the basis of the conspiracy charge.
Prosecution Clarifies Legal Argument
DOJ prosecutor Thane Rehn clarified during the call that licensing would not be a central issue in the upcoming trial.
“The word ‘license’ doesn’t apply here… we intend to prove the defendant knew they were transmitting funds derived from criminals,” he stated.
Trial Date Approaching Amid Legal Tensions
Judge Failla asked prosecutors whether they planned to change any remaining charges or legal theories before the July trial, cautioning that late changes could disadvantage the defense.
The trial is set to begin in under two months, and will test the U.S. government’s approach to regulating decentralized privacy tools in the crypto industry.