In a decisive move ahead of the high-profile trial of Tornado Cash developer Roman Storm, the presiding federal judge has ruled that the verdict in the Van Loon v. Department of Treasury case will not be allowed as evidence or discussion during trial proceedings.
“The words ‘Van Loon’ are not going to show up in this trial,” stated District Judge Katherine Polk Failla during a recent status hearing in Manhattan, making it clear that the ruling in the Van Loon case will play no role in Storm’s legal defense.
What Is the Roman Storm Trial About?
Roman Storm is one of the developers behind Tornado Cash, a decentralized cryptocurrency mixing service that has come under scrutiny for its alleged role in enabling money laundering operations, including those tied to North Korea’s Lazarus Group—a state-sponsored cybercrime unit accused of funding weapons development through stolen cryptocurrency.
The upcoming trial, set to begin on June 14, will center on Storm’s role in Tornado Cash, including his involvement in the platform’s governance, transactions, and public communications following government sanctions.
Why the Van Loon Verdict Is Excluded
The Van Loon case challenged the U.S. Treasury’s authority to sanction Tornado Cash. In March, a federal judge in Texas ruled that the Office of Foreign Assets Control (OFAC) had overstepped by targeting Tornado Cash as an entity and subsequently prohibited it from being relisted. While this was a significant decision in crypto legal history, Judge Failla ruled that referencing it would risk confusing the jury, especially if legal interpretations differed between districts.
This exclusion limits the defense’s ability to reference prior rulings that could support arguments of overreach or mischaracterization of Tornado Cash’s nature as a decentralized tool.
OFAC Sanctions and North Korea References Under Review
Judge Failla also indicated she has not finalized her decision on whether OFAC’s 2022 sanctions against Tornado Cash can be discussed during the trial. Storm’s legal team has requested the sanctions be excluded from witness testimony and closing arguments, citing potential bias and lack of relevance to individual conduct. However, prosecutors argue that the sanctions are necessary context, especially regarding Storm’s actions after the platform was sanctioned, including selling millions of dollars’ worth of tokens and stepping away from direct control.
Additionally, both sides were cautioned about overusing references to North Korea’s weapons of mass destruction (WMD) program. The prosecution contends that Tornado Cash facilitated money laundering for the Lazarus Group, a central element in their case.
What’s Next?
With the trial date approaching, pre-trial motions and evidentiary disputes continue to shape the legal battlefield. The court’s firm stance on excluding the Van Loon ruling signals a tightly controlled trial where only directly relevant evidence will be permitted.
This case may ultimately set critical legal precedents for developers of decentralized technologies and how U.S. law interprets liability, intent, and code deployment in the age of crypto.
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.