Judge Bars Related-Case Evidence in Roman Storm’s Tornado Cash Trial
A federal judge has barred prosecutors from referencing a parallel case in the trial of Roman Storm, co-founder of the Tornado Cash mixing protocol. In pretrial hearings, the court ruled that evidence related to the 2022 OFAC sanctions on Tornado Cash is legally distinct and risks prejudicing the jury by conflating separate charges. Storm faces allegations of laundering cryptocurrency through Tornado Cash to evade sanctions. By limiting testimony to the specific charges at hand, the decision aims to ensure a fair trial and may set a precedent for future crypto compliance litigation. Traders should watch for similar rulings as they could influence regulatory pressure on privacy-focused mixers and impact market sentiment.
Bullish
By excluding related-case evidence and limiting the trial to specific OFAC charges, the ruling reduces regulatory uncertainty around Tornado Cash. In the short term, traders of privacy-focused assets may see a relief rally as legal risks appear more contained. Over the long term, this precedent could strengthen the compliance outlook for decentralized mixers, encouraging broader adoption and investment in privacy protocols.