Tornado Cash Developer Roman Storm’s Trial Delayed to April

Highlights:

• Tornado Cash Developer Roman Storm’s trial delayed to April after defense and prosecution battle over expert witness disclosures.
• The trial schedule will affect the Roman Storm trial, allowing time to settle on Judge Failla’s ruling.
• Roman Storm could face 45 years in prison after being charged related to Tornado Cash including money laundering and sanction violations.

Tornado Cash Developer Roman Storm’s trial has been adjourned until April as his defense team battles with prosecutors over expert witness disclosures. A New York judge handed the four-month delay to both parties, giving them more time to come to a resolution. The trial had been scheduled to begin in December but has been re-scheduled to April 14 and is expected to last two weeks.

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A New York judge ruled on Friday that the criminal trial of Tornado Cash co-founder Roman Storm will be postponed to April 2025 to resolve disagreements disclosed by expert witnesses, and his hearing is scheduled for November 12. Storm is charged with three counts of facilitating…

— Wu Blockchain (@WuBlockchain) November 2, 2024

Both sides have been ordered by Judge Katherine Polk Failla of the Southern District of New York to share information related to potential expert witnesses. However, in an October 14 filing Storm’s attorney, Brian Klein of Waymaker LLP, opposed this claim.

Disclosing expert witnesses, he said, could compromise the defense’s strategy and violate rules against disclosing issues in federal criminal procedure. Klein added that the defense had not asked for similar information from the prosecution team. Moreover, they asserted no one should compel them to share their expert list.

Defense Challenges Court’s Order in Higher Court

In response to the judge’s order, Storm’s legal team filed a mandamus petition in the U.S. Court of Appeals for the Second Circuit. They seek to overturn Judge Failla’s ruling because it may contravene federal rules governing criminal cases. A hearing on the mandamus petition is scheduled for 12 November, five months before the new trial date.

The focal point of the case is the dispute over expert witness disclosures. The defense argues that disclosing their experts would unfairly tip their hand to prosecutors and prejudice Storm’s ability to mount an effective defense in the case to an unfair degree. However, the prosecution, on the other hand, insists mutual disclosure is an essential part of a fair trial.

Charges Stem from Work with Tornado Cash

Three federal charges follow Roman Storm’s work with Tornado Cash, a cryptocurrency mixing service. The charges include conspiracy to facilitate money laundering, conspiracy to operate an unlicensed money transmitter, and violating US sanctions. If convicted on all counts, he could face up to 45 years in prison.

Storm’s case highlights the legal complexities surrounding cryptocurrency mixing services. Tornado Cash is designed to obscure transactional origins. This feature has drawn heightened scrutiny from regulators concerned about illicit activity. According to the indictment, Storm’s actions enabled money laundering activities, including those of North Korean hacking groups.

Now that the trial has been scheduled for April, both the defense and prosecution are expected to engage in pre-trial motions and hearings. A critical step is the November 12 hearing on the mandamus petition. The court’s decision in the petition could determine whether the defense must disclose its expert witnesses ahead of the trial, which may impact legal strategies for both parties.

Legal cases related to cryptocurrency are gaining momentum. Recently, the U.S. Department of Justice charged Aleksei Andriunin, the founder of Gotbit, for manipulating crypto trading volumes and deceiving investors with fake activity. Andriunin and directors could face up to 20 years in prison for the scheme. 

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