Tornado Cash Trial: Storm's Crypto Control Under Scrutiny

The criminal trial of Roman Storm, co-founder of Tornado Cash, has seen US prosecutors present testimony from an Internal Revenue Service (IRS) agent as they near the end of their case.

IRS Agent Claims Storm Had 'Control'

IRS Criminal Investigation Special Agent Stephan George testified that he reviewed transaction records from cryptocurrency exchanges Crypto.com and Binance. According to Inner City Press, George stated that Storm “[had] control” over funds based on communications among Storm, Alexey Pertsey, and Roman Semenov. This control allegedly involved sending crypto from a Binance-linked account to Tornado Cash smart contract addresses.

Defense Challenges Evidence, Eyes Mistrial

Storm’s attorneys challenged the testimony, referencing Hanfeng Lin's experience—a romance scam victim who testified about stolen crypto funds sent through Tornado Cash. The defense suggested a potential mistrial, arguing that research indicated none of Lin’s funds went to the crypto mixing service. They contested Lin's expertise in tracing cryptocurrency criminal proceeds and attributing control over wallet addresses.

In a Tuesday filing, Storm’s legal team stated that Lin's accounting background didn't qualify him to testify about tracing crypto or attributing control over various wallet addresses to the alleged hacker.

Central Issue: Control Over Tornado Cash

The core of the prosecution's argument is whether Storm could control Tornado Cash by blocking or disincentivizing illicit funds. Another government witness was expected to discuss Storm's ability to modify the platform to deter criminal activity, focusing instead on the mixer’s behavior in response to sanctions.

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Defense Prepares to Present Its Case

Storm faces charges, including money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate US sanctions. Prosecutors anticipate concluding their case, after which Storm’s attorneys will present their defense.

Storm’s lawyers plan to call “two or three doctors” to testify, and potentially an expert witness from Chainalysis, according to Inner City Press.

Stay tuned for updates as the trial progresses.