Tornado Cash Trial Shaken by Mistaken Scam Link, Mistrial Considered

The legal battle over Tornado Cash developer Roman Storm took a dramatic turn as defense lawyers hinted at seeking a mistrial after new evidence challenged the government’s tracing of scam proceeds to the crypto privacy tool. On day one of the trial, a Georgia woman, Hanfeng Ling, testified she lost $250,000 to a “pig butchering” scam. She claimed the funds were linked to Tornado Cash via Payback, a crypto recovery firm. However, crypto researcher Taylor Monahan, known as @tayvano_X, disproved the link. She traced Ling’s funds to a separate case involving NTU Capital and found no connection to Tornado Cash, citing tracing errors due to instaswaps. Monahan’s findings were corroborated by other blockchain investigators, including ZachXBT, who criticized Payback’s methods.

Storm’s attorney, David Patton, told the court the defense could not trace Ling’s funds to Tornado Cash and questioned the government’s preparation. Surprisingly, FBI Agent Joel DeCapua, testifying as an expert, admitted he was never asked to investigate the specific connection. Prosecutor Nathan Rehn insisted an IRS agent would prove the link, calling it “a few short hops,” though the presiding judge admitted uncertainty due to her lack of blockchain expertise.

DeCapua, meanwhile, gave a general overview of crypto hacks involving Tornado Cash but was unfamiliar with key incidents like the Wormhole hack or crypto-related physical threats. His limited awareness drew criticism from the defense and raised further concerns over the government’s case.

The revelation casts doubt on the legitimacy of the evidence against Tornado Cash, potentially undermining the prosecution’s narrative and exposing the risks of flawed crypto forensics in legal proceedings.