Prosecutors are seeking to block testimony regarding alleged crypto kidnappings in the trial of Roman Storm, co-founder and developer of Tornado Cash. The trial, which commenced with jury selection on Monday, centers around charges of money laundering, conspiracy to operate an unlicensed money transmitter, and conspiracy to violate U.S. sanctions related to Storm's role at Tornado Cash.
Interim New York Attorney and former Securities and Exchange Commission (SEC) Chair Jay Clayton filed a motion to preclude evidence and arguments based on privacy rights. Specifically, Clayton requested the judge to disallow Storm's attorneys from eliciting testimony about individuals being threatened, harmed, or even kidnapped for their cryptocurrency. Clayton argued that such testimony is irrelevant to the charges against Storm and could potentially prejudice the jury. He stated that allowing Matthew Green, an expert witness, to testify about instances of investors or those close to them being kidnapped or tortured would be "inflammatory and prejudicial". The prosecution contends that these incidents are not directly tied to Storm's state of mind and risk inviting improper discussions of privacy rights or jury nullification.
The defense, however, argues 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 maintain that the alleged incidents are directly related to the charges and are essential for providing context and understanding of the events in question. Keri Axel, Storm's lawyer, stated that he made people safe. The defense claims the testimony could mislead jurors into wrongly associating Storm with a hack, despite no direct link. They also suggest the testimony could evoke an emotional reaction from jurors, potentially prejudicing them against Storm.
Judge Katherine Failla is 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 considered prejudicial and irrelevant.
The prosecution's attempt to block this testimony follows opening statements where defense lawyers alluded to questioning witnesses on crypto-related cases involving kidnapping and torture. U.S. prosecutors reportedly objected twice during Storm's lawyer's opening statement after he referenced the physical safety of users, prompting the Wednesday filing.
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 regarding the admissibility of evidence related to cryptocurrency activities.
The case has drawn significant attention from the crypto community. Roman Storm has voiced concerns over the case's broader implications, claiming that if he loses, "DeFi dies with me". Figures in the crypto community, including Ethereum co-founder Vitalik Buterin and Paradigm's Matt Huang, have supported his legal defense. Another Tornado Cash co-founder, Alexey Pertsev, was convicted on similar charges in the Netherlands and sentenced to over five years in prison in 2024. Roman Semenov, also named in the indictment, remains at large and is believed to be hiding in Russia.
