Roman Storm prosecutors seek to block testimony on crypto kidnappings

US attorneys prosecuting Tornado Cash co-founder and developer Roman Storm are asking a judge to block certain testimony after opening statements on Tuesday suggested that defense lawyers plan to question witnesses on crypto-related cases involving kidnapping and torture

In a Wednesday filing, interim New York Attorney and former Securities and Exchange Commission Chair Jay Clayton asked Judge Katherine Failla “to preclude evidence and arguments based on privacy rights” following opening statements.

Specifically, Clayton requested that the judge not allow Storm’s attorneys to elicit testimony about “people being threatened, harmed, and even kidnapped” for their crypto during witness testimony

“[T]his Court should not permit [the witness] to testify to criminal incidents, which Storm has not tied to his state of mind—and has not proffered evidence that he could do so absent his own testimony,” said the government filing. “Beyond that, testimony concerning dangerous gangs and bad actors threatening, harming, and kidnapping people for their crypto is not the purview of expert testimony, is inflammatory, and calls for jury nullification [...]”

Source: SDNYStorm’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. US prosecutors objected twice during his lawyer’s opening statement after he referenced the physical safety of users, likely leading to the Wednesday filing.

Related: TikTok crypto trader freed after kidnappers realized he’s broke

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.”

Jury selection and opening statement completed, witnesses now testifying at trial

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 Taiwanese crypto investor on Tuesday, followed by a crypto dispute lawyer on Wednesday.

The lawyer, a partner at McDermott Will and Emery, represented crypto exchange BitMart 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.

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