Tornado Cash: Dev Claims Prosecutors Hid Evidence
Tornado Cash Developer Accuses Prosecutors of Withholding Evidence
The legal battle surrounding Tornado Cash developer Roman Storm has taken a dramatic turn. Storm's attorneys filed a motion urging the court to reconsider the dismissal motion, claiming the prosecution concealed exculpatory evidence. This evidence consists of 2023 communications with the Financial Crimes Enforcement Network (FinCEN).
According to a May 16 letter to Judge Katherine Polk Failla, these FinCEN documents allegedly demonstrate that non-custodial cryptocurrency mixers don't meet the legal definition of a "money transmitting business." The defense argues prosecutors knew this since at least 2023.
Despite this knowledge, the prosecution reportedly proceeded with cases against both Samourai Wallet developers and Tornado Cash. This, Storm's legal team alleges, constitutes a serious breach of legal procedure.
Prosecutors Deny Withholding Evidence
US prosecutors counter that they provided the FinCEN communications within the legally mandated timeframe during discovery. They deny any intentional withholding of evidence.
Parallel Case: Samourai Wallet
Storm's defense points to the similarities between their case and that of Samourai Wallet developers, who made similar arguments regarding the FinCEN guidance. The defense claims that the government's actions in both cases demonstrate a pattern of potentially misleading the court.
"The disclosures in the Samourai case reveal that the government, at the very least, played fast and loose and, at worst, affirmatively misled this Court with its arguments about FinCEN guidance when responding to the motions to dismiss and to compel discovery."
While the government maintains superficial differences, Storm's attorneys argue the core issue—the legal classification of cryptocurrency mixers—remains the same, making the FinCEN documents highly relevant.
Tornado Cash Trial Proceeds Despite Unlawful Sanctions Ruling
Adding another layer of complexity, a separate ruling on April 28 by Federal Judge Robert Pitman declared the Office of Foreign Assets Control (OFAC)'s sanctions against Tornado Cash unlawful. This sets a significant precedent for future cases involving non-custodial mixers.
However, the case against Storm continues, albeit with amended charges. This highlights the ongoing challenges in navigating the evolving legal landscape of decentralized finance (DeFi).
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