Tornado Cash Trial Delay Over Surprise Hacker Testimony
Roman Storm’s defense counsel filed a motion in the SDNY to exclude a surprise hacker witness disclosed after court deadlines. With jury selection set to start Monday, this challenge could push back the Tornado Cash trial. The trial centers on charges of unlicensed money transmission, money laundering and U.S. sanctions violations. Now it hinges on both the hacker testimony and disputed sanctions evidence. The defense plans to call blockchain experts and contest references to overturned sanctions. Prosecutors insist the hacker’s account is crucial to prove Storm’s intent. A judge will rule on witness admissibility and sanctions evidence by week’s end. Crypto traders should monitor the Tornado Cash trial delay, as any outcome may trigger volatility in privacy protocol regulation and set precedents for open-source developers.
Bearish
The surprise hacker testimony and potential trial delay amplify legal uncertainty around Tornado Cash, increasing short-term volatility and negative sentiment for TORN. In the long term, a precedent against open-source privacy protocols may raise regulatory hurdles, dampening investor confidence and exerting further downward pressure on the token.