Prosecutors Seek to Block Crypto Kidnapping Testimony in Tornado Cash Trial

Prosecutors in the case of Roman Storm, the co-founder and developer of Tornado Cash, have filed a motion to block testimony related to alleged crypto kidnappings. The request, made by interim New York Attorney and former Securities and Exchange Commission Chair Jay Clayton, seeks to exclude any evidence or witness statements that discuss individuals being threatened, harmed, or kidnapped in connection with cryptocurrency activities. Clayton argued that such testimony is irrelevant to the charges against Storm and could potentially prejudice the jury.

The defense, however, maintains that this testimony is crucial to their case, as it allegedly demonstrates a pattern of behavior and intent on the part of the prosecution's witnesses. Storm's attorneys contend that the alleged incidents are directly related to the charges and are essential for providing context and understanding of the events in question. The witness at issue, 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.”

The court is now tasked with weighing the relevance and admissibility of the proposed testimony. The decision will likely hinge on whether the judge deems the evidence to be directly related to the charges against Storm or if it is deemed prejudicial and irrelevant. This development underscores the complexities involved in cases that intersect with the cryptocurrency industry, where the lines between legitimate financial activities and criminal behavior can often be blurred.

The outcome of this motion could set a precedent for how similar cases are handled in the future, particularly in regards to the admissibility of evidence related to cryptocurrency activities. It also highlights the challenges faced by prosecutors and defense attorneys in navigating the intricacies of digital currencies and their potential misuse. As the case progresses, the court's ruling on this motion will be closely watched by legal experts and those involved in the cryptocurrency community.

Storm’s criminal trial, in which he faces charges of money laundering, conspiracy to operate an unlicensed money transmitter and conspiracy to violate US sanctions related to his role at Tornado Cash, kicked off with jury selection on Monday. Prosecutors objected twice during his lawyer’s opening statement after he referenced the physical safety of users, likely leading to the Wednesday filing. 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. He 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.