A judge is set to decide the outcome for Rome Storm, co-founder of Tornado Cash, a cryptocurrency mixing service, after a closing discussion between prosecutors and the defense took place on Wednesday.
This final stage involves both sides summarizing their cases in front of a judge or apprentice before the latter deliberates and attempts to reach a conclusion.
Storm is on trial in Southern New York, where the outcome could influence how much liability developers hold for decentralized software that is misused.
Prosecutors allege that Storm conspired to launder money, violated U.S. sanctions, and operated an unauthorized money transfer venture. If found guilty, he could face up to 40 years in prison.
The judge has issued the final instructions, and deliberations are expected to commence soon.
Prosecutors contend Storm is a co-conspirator
Ben Gianforti, an assistant U.S. attorney experienced in crypto crimes, stated that Storm ran an “illegal communication business” to “hide illicit funds,” violating sanctions against North Korea and the Lazarus Group.
During his concluding remarks, Gianforti claimed that Tornado Cash was utilized following significant security breaches like the Cucoin Hack and the Ronin Hack, asserting that the platform transferred $350 million from a sanctioned Lazarus wallet after the sanctions were imposed.
“This is a straightforward story,” Gianforti remarked. “Tornado Cash was essentially an online money laundering operation for criminals. The focus was on privacy for illicit activities. Use your common sense—Storm is guilty. Thank you.”
Related: Storm seeks a $1.5 million lifeline amid Tornado Cash trial developments.
Defense argues that Storm did not intend to assist criminals
David Patton, representing Storm’s defense, claimed that Tornado Cash functions like many other technology products.
Patton emphasized intention in his argument, stating that it’s not just about knowing that criminals use the product; it’s also necessary to have intended to aid them. “Storm’s intentions were quite the opposite. You’d think just closing the U.S. is enough to understand,” he said.
https://www.youtube.com/watch?v=_vwulhcmk1e
He contended that Storm never celebrated the fact that hackers exploited Tornado Cash. “This isn’t a case of citizen negligence,” Patton said. “There must be intentionality in any wrongdoing.”
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