Judge Declines to Order DOJ to Review Records in Roman Storm Case

In a 30-minute hearing on Friday, a federal judge overseeing the prosecution of Roman Storm, a Tornado Cash developer, declined to order the Department of Justice (DOJ) to conduct a further review of its records. Defense attorneys argued the DOJ should review for any potentially exculpatory material that might have been missed. Judge Katherine Polk Failla, however, stated she didn’t believe any such material existed and that the government’s representations indicated no additional disclosure issues. She differentiated between a request for information and a Brady violation, a Supreme Court precedent mandating the disclosure of all exculpatory evidence to the defense.

The hearing centered on the DOJ’s conversations with the Financial Crimes Enforcement Network (FinCEN) regarding whether cryptocurrency mixers need to register as money transmitters. This issue is directly relevant to the charges against Storm, focusing on whether Tornado Cash should have been licensed. The defense argued that the timing of the prosecutors’ knowledge of these FinCEN conversations was crucial. They pointed out that while one part of the charges related to unlicensed money transmission had been dropped, the core charge remained.

A prosecutor involved in the Sam Bankman-Fried case clarified that their team wouldn’t argue Tornado Cash needed a license. Instead, they intend to prove Storm knew Tornado Cash was used to transmit funds derived from criminal activities. The judge repeatedly questioned the prosecutors about potential changes to their theories or charges before the trial, highlighting concerns about fairness to the defense if such alterations occurred close to the trial date, scheduled for less than two months away.

Despite the defense’s concerns, Judge Failla ruled there were no Brady violation concerns regarding the DOJ’s interactions with FinCEN. The judge’s decision means the DOJ will not conduct an additional record review. The case against Storm will proceed, with the prosecution focusing on proving Storm’s knowledge of the criminal activity associated with Tornado Cash transactions rather than focusing on licensing requirements. The proximity of the trial date underscores the urgency of the ongoing legal proceedings.