Judge Likely to Exclude Tornado Cash Sanctions from Roman Storm Trial

A US federal judge overseeing the criminal trial of Tornado Cash co-founder Roman Storm has indicated she will likely exclude references to the 2022 sanctions against the crypto mixing service during court proceedings. Judge Katherine Failla of the US District Court for the Southern District of New York stated she was “inclined to keep out the August 2022 sanctions” imposed by the Treasury’s Office of Foreign Assets Control (OFAC), noting they were later repealed. In 2022, OFAC added addresses linked to Tornado Cash to its sanctions list, alleging its use in illicit transactions. However, these sanctions were withdrawn in March after a federal judge ordered their repeal following a civil case filed by Tornado Cash users. “The sanctions were withdrawn,” Judge Failla said, suggesting that introducing them would imply Storm had “consciousness of guilt” for something that was ultimately not upheld by the courts. North Korea Links with Tornado Cash Likely to Remain While the judge appears prepared to exclude the withdrawn sanctions, she signaled she would not grant a motion to prohibit references to North Korea or the Lazarus Group, a hacking collective accused of laundering stolen funds through Tornado Cash. Prosecutors have cited these connections as part of their case against Storm, who was indicted in August 2023 on charges of money laundering, conspiracy to operate an unlicensed money transmission business, and conspiracy to violate US sanctions. The trial is scheduled to begin on Monday, with Judge Failla expected to finalize rulings on witness testimonies beforehand. The outcome of these decisions will shape the evidence presented, influencing what is likely to become a landmark trial for crypto developers in the United States. Crypto Community Rallies Behind Storm The case against Storm has sparked a wave of support from the crypto industry, with prominent figures arguing that “writing code is not a crime.” Ethereum co-founder Vitalik Buterin, Paradigm founder Matt Huang, and the Ethereum Foundation have collectively contributed thousands of dollars to Storm’s legal defense fund ahead of the trial. If it proceeds as planned, Storm’s trial will be closely watched, following the high-profile convictions and sentencing of figures like former FTX CEO Sam Bankman-Fried , former Binance CEO Changpeng Zhao, and former Celsius CEO Alex Mashinsky. The crypto community views the case as a critical test of developer liability, as Tornado Cash’s legal battle unfolds alongside other major enforcement actions, including the prosecution of Terraform Labs co-founder Do Kwon, who also faces charges in the US. The post Judge Likely to Exclude Tornado Cash Sanctions from Roman Storm Trial appeared first on TheCoinrise.com .