Stormy Waters: Cryptocurrency Mixer’s Co-Founder Wins Partial Privacy Defense in Money Laundering Trial

Tornado Cash’s Roman Storm Wins Partial Privacy Defense in Money Laundering Trial

Roman Storm, co-founder of the cryptocurrency mixer Tornado Cash, has secured a partial victory in his ongoing money laundering and sanctions violations trial. The judge presiding over the case, Katherine Failla, ruled that Storm can present arguments about privacy motivations during the trial, albeit with certain limitations.

As reported by DL News, Judge Failla’s decision came after prosecutors requested that any references to privacy rights be blocked from the defense’s arguments, fearing it could improperly influence the jury. The judge disagreed in part, allowing Storm and his witnesses to discuss the importance of privacy in cryptocurrency, but not under the guise of a constitutional “right to privacy.”

Failla clarified that while “beliefs about privacy” can be cited to explain Tornado Cash’s creation and legitimate uses, broader legal rights cannot be invoked. This ruling effectively limits the scope of Storm’s defense, which has maintained that the protocol helped users shield sensitive financial data from public view in a space where all blockchain transactions are otherwise traceable.

Storm is charged with money laundering conspiracy, operating an unlicensed money-transmitting business, and violating US sanctions. Prosecutors have accused Tornado Cash of assisting North Korean hackers and other illicit actors by obscuring funds linked to their activities.

Source: cryptobriefing.com