Jay Clayton to Lead Roman Storm Trial Amid Crypto Industry Concerns

Former chairman of the Securities and Exchange Commission (SEC) Jay Clayton has been appointed to oversee the trial of Roman Storm, the co-founder of the popular crypto mixing service Tornado Cash. Storm is set to go on trial in New York for criminal conspiracy to commit money laundering and evading United States sanctions. This development comes despite the crypto-friendly stance of United States President Donald Trump, who has promised support for the crypto industry.

Clayton, who served as the SEC chairman during the first administration of Donald Trump, has a history of initiating crackdowns against crypto firms. In one of his last acts as SEC chair in late 2020, Clayton presided over a $1.3 billion lawsuit against Ripple, alleging that the company offered unregistered securities when it sold XRP to its investors. This lawsuit was later continued by Gary Gensler, who succeeded Clayton as SEC chair. During his tenure, Clayton brought 57 cases against crypto firms, ICOs, and other blockchain-based projects.

After leaving the SEC, Clayton returned to practicing law at Sullivan & Cromwell in New York and joined the advisory board of Fireblocks, a crypto firm that provides custody services. He was later appointed by President Trump as the US Attorney for the Southern District of New York, a post that oversees high-profile criminal prosecutions, including that of Storm. The Trump administration has continued to pursue charges against Storm, despite the Treasury Department dropping its case against his platform.

The upcoming trial of Storm has raised concerns among crypto advocates that a successful prosecution could set a harmful precedent targeting software developers and potentially destroying the American decentralized finance (DeFi) industry. Storm himself has expressed that if he loses the trial, "DeFi dies with me." Under Clayton’s leadership, the Trump DOJ SDNY’s office is moving ahead with the case against Storm, with Clayton's name appearing in every pre-trial motion filed by the DOJ. The trial is expected to begin on Monday in lower Manhattan and will be presided over by Judge Katherine Failla, who previously oversaw the SEC’s battle against Coinbase.