New York—A federal judge has allowed Tornado Cash co-founder Roman Storm to address privacy concerns during his criminal trial, though limitations have been imposed on how those discussions can take place. Judge Katherine Polk Failla ruled on Friday that while Storm’s defense team may refer to the necessity of privacy, they cannot invoke a legal “right to privacy” in their arguments.
In her decision, Failla emphasized that the defense could discuss relevant privacy issues but cannot reference “inflamatory” incidents such as cryptocurrency-related kidnappings unless they occurred before August 8, 2022. This ruling marks a setback for prosecutors, who had argued that discussions around privacy could unduly influence jurors and lead to a sympathetic perception of Storm.
Prosecutors had petitioned for stricter controls on evidence, citing concerns that references to privacy rights could skew jurors’ understanding of the case. They maintained that only Storm himself should be allowed to discuss privacy issues, as it is vital for the jury to assess whether he intended to violate laws while developing Tornado Cash.
Tornado Cash is a decentralized protocol designed to obscure user transactions on the Ethereum blockchain, attracting both privacy advocates and cybercriminals alike. Storm faces serious charges, including conspiracy to commit money laundering, running an unlicensed money-transmitting business, and violating U.S. sanctions. If convicted, he could serve up to 45 years in prison.
Earlier this summer, prosecutors also sought to keep out evidence they considered irrelevant to the charges, including claims that Tornado Cash had been used for lawful purposes by some customers. They took issue with Storm’s defense attorney Keri Axel’s opening statements, which referenced keeping financial transactions private.
Failla had earlier made it clear that while Storm’s discussions on the importance of privacy could go forward, they should not invoke the First Amendment or any implied rights associated with it. “The right to privacy” carries legal implications, and she wanted to avoid any complexities that could confuse the jury.
Furthermore, the judge clarified that certain incidents, like crypto kidnappings, could only be discussed by the defense if relevant to Storm’s state of mind during the creation of Tornado Cash. She expressed concern that connecting Tornado Cash with kidnappings without proper context could lead to undue prejudice against Storm.
Judge Failla noted that while blockchains act as public ledgers that can expose a user’s financial history, the defense could discuss privacy concerns without resorting to sensational comparisons. She indicated that evidence presented in a less exaggerated manner could still establish why Storm felt privacy in cryptocurrency transactions was vital.
Storm’s trial commenced earlier this week and is expected to last approximately three weeks. The outcome of this case could have significant implications for ongoing debates surrounding privacy and regulatory practices in the rapidly evolving cryptocurrency landscape.
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