Judge Postpones Tornado Cash Co- founder’s Trial to December

As a long-term crypto investor with a keen interest in the legal aspects of the industry, I find the ongoing trial of Roman Storm and Tornado Cash a fascinating development. The delay in the proceedings from September to December 2nd is not unexpected given the legal complexities involved in this case.


A federal judge has granted a postponement of the trial for Roman Storm, one of the founders of Tornado Cash, moving the court dates from September to December 2nd.

Katherine Polk Failla, Judge of the Southern District of New York, granted a delay in the case due to intricate legal issues that merit thorough analysis.

Expert: In a recent development, Judge Failla has approved Roman Storm’s request to postpone his upcoming criminal trial regarding the use of Tornado Cash. The new trial date is now set for December 2. A comprehensive account of an intriguing court proceeding on this matter will be available soon.

— David Z. Morris, PhD (@davidzmorris) July 12, 2024

The ongoing legal dispute regarding Tornado Cash, a cryptocurrency mixing firm founded by Storm, involves this decision as part of the proceedings. Storm’s legal team originally requested that the trial commence in January 2025 to ensure adequate time for examining evidence and crafting an effective defense.

Instead of “However, Judge Failla opted for an early December hearing, stressing the importance of well-organized trials and prompt court proceedings,” you could say “Judge Failla scheduled the case for early December to ensure thorough trial preparation and efficient court 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 highlighted the distinct characteristics of the case, referring to it as the initial money laundering trial where the defendant had no authority over the funds being investigated. In response, Assistant U.S. Attorney Thane Rehn emphasized that in cases where individuals lack control over the questioned funds, it is their responsibility to implement appropriate measures and ensure their businesses do not facilitate criminal activities.

As a crypto investor following the latest developments in the case involving Alexey Pertsev, a Tornado Cash developer, I’ve been keeping an eye on the court hearing. During the proceedings, several motions regarding evidence and procedures were brought up. The defense made a request for communications between U.S. and Dutch investigators concerning the arrest of Alexey. They claimed these documents are essential to their case. However, the prosecution objected, citing diplomatic reasons and arguing that the information is irrelevant to the trial.

Furthermore, the court explored the boundaries of search warrants and confiscation of digital currencies. The defense advocated for restrictions on the government’s power to take Storm’s crypto wallets linked to the blockchain, as tokens cannot be confiscated from private keys discovered during a home search.

As a crypto investor, I’m keeping a close eye on the upcoming ruling by Judge Failla in our case. She is anticipated to make decisions on several motions, such as those concerning discovery, searches of crypto wallets, and potential dismissal of charges. The judge has raised some concerns about holding software developers responsible for how their inventions are utilized, drawing a parallel to popular apps like WhatsApp.

As an analyst, I would rephrase the given statement as follows: I pondered over the potential consequences of holding software developers accountable for criminal actions associated with their applications. Prosecutors, however, asserted that while the First Amendment shields WhatsApp’s operations, it does not extend to financial transactions facilitated through Tornado Cash.

In a similar situation, a Dutch court recently refused to grant Alexey Pertsev early release from prison. Pertsev was found guilty of money laundering and received a sentence exceeding five years for his involvement in laundering stolen and ill-gotten cryptocurrency using Tornado Cash.

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2024-07-13 07:02