Privacy Shield or Money Launderer? The Tornado Cash Debate Explodes in Roman Storm’s Trial

Day one of Roman Storm’s trial turned into a battleground over crypto’s most controversial mixer—Tornado Cash. Lawyers clashed: Is it a legit privacy tool or a dirty-money laundromat?

The prosecution painted a picture of a shadowy financial blender, while defense attorneys argued for privacy rights in an era of blockchain surveillance. No middle ground in sight.

Meanwhile, Wall Street bankers—busy laundering billions through ‘legitimate’ offshore vehicles—somehow kept straight faces during testimony. Crypto’s disruptive? Only when it threatens their monopoly on financial opacity.

First witness

After opening statements concluded, the government called its first witness, a Taiwan-born Georgia resident named Hanfeng Ling. Ms. Ling told the court how she was the victim of a pig butchering scam in the fall of 2021, that began with a wrong-number Whatsapp message. The scammer convinced Ling to transfer nearly $200,000 from her savings account to purchase crypto and then “invest” the crypto in a fake foreign exchange trading platform.

Ms. Ling’s testimony will continue on Wednesday. Nathan Rehn, the lead prosecutor, told the court that he expects her testimony will be followed by four more government witnesses on Wednesday.

The bulk of Storm’s trial is expected to take place over three weeks, followed by jury deliberation.