Prosecutors Defend Withholding FinCEN Opinion in Tornado Cash Case

Federal prosecutors are facing backlash for withholding key information in the case against Tornado Cash developer Roman Storm. Defense attorneys argue that prosecutors violated their Brady obligations, which require them to disclose evidence favorable to the defendant.

The controversy stems from a related case involving Samourai Wallet co-founders Keonne Rodriguez and William Hill. In that case, prosecutors admitted to speaking with FinCEN officials in 2023, who stated that Samourai Wallet likely didn’t qualify as a money transmitting business and didn’t need a license. Defense attorneys claim this conversation was suppressed and constitutes crucial exculpatory evidence.

Storm’s lawyers argue that the same FinCEN communication should have been disclosed in their case, as both involve crypto mixing services allegedly used for money laundering. Prosecutors disagreed, asserting that the FinCEN comments were opinions, not factual evidence, and therefore not subject to Brady disclosure.

According to prosecutors, the FinCEN discussion was specific to Samourai Wallet and did not reference Tornado Cash. They emphasized that Tornado Cash operated differently and that no similar discussions occurred between the government and FinCEN regarding Storm’s platform. They also noted that no formal opinion was ever sought or received from FinCEN about Tornado Cash’s regulatory status.

Prosecutors argued that even if such informal opinions had existed, they wouldn’t be admissible in court and wouldn’t qualify as Brady material. The trial against Roman Storm is scheduled to begin on July 14 in the Southern District of New York.

This case underscores ongoing legal battles around crypto mixers, regulatory ambiguity, and the tension between privacy tools and anti-money laundering enforcement in the U.S. crypto space.