Prosecutors Seek Ban on Crypto Kidnapping Testimony in Tornado Cash Trial

Prosecutors in the case against Roman Storm, the co-founder and developer of Tornado Cash, have requested that a judge prevent certain testimonies from being presented. This request comes after opening statements on Tuesday indicated that the defense might question witnesses about crypto-related kidnappings and torture incidents.

In a filing submitted on Wednesday, interim New York Attorney and former Securities and Exchange Commission Chair Jay Clayton asked Judge Katherine Failla to exclude evidence and arguments related to privacy rights. Clayton specifically asked the judge to prohibit Storm’s attorneys from eliciting testimony about individuals being threatened, harmed, or kidnapped for their cryptocurrency.

The government’s filing stated that the court should not allow the witness to testify about criminal incidents unless Storm can provide evidence linking these incidents to his state of mind. The filing also argued that testimony about dangerous gangs and bad actors threatening, harming, and kidnapping people for their crypto is not relevant to expert testimony, is inflammatory, and could lead to jury nullification.

Storm’s criminal trial, which began with jury selection on Monday, involves charges of money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate US sanctions related to his role at Tornado Cash. Prosecutors objected twice during the defense’s opening statement when the lawyer referenced the physical safety of users, which likely prompted the Wednesday filing.

The witness in question, Matthew Green, is expected to testify on why venture capitalists do not wish to be associated with criminal activity. Clayton argued that Green testifying on instances of investors or those close to them being kidnapped or tortured would be inflammatory and prejudicial.

Wednesday marked the third day of what is expected to be a monthlong trial for Storm in New York. Prosecutors began their case with testimony from a crypto investor on Tuesday, followed by a crypto dispute lawyer on Wednesday. The lawyer, a partner at a law firm, represented a crypto exchange after it suffered a hack in 2021 and contacted Tornado Cash seeking information on transactions tied to the stolen funds.

Justin Bram, formerly associated with Tornado Cash, also took the stand on Wednesday to testify on the mixing service’s features, including whether it could geo-block countries facing sanctions. One of the charges Storm’s defense team is expected to address includes allegations that he violated US sanctions through his role at Tornado Cash.