Tornado Cash and Samourai Wallet Defense Accuses Prosecutors of Withholding Crucial Evidence in Protocol Cases
- Defense claims FinCEN call could prove vital to Samourai, Tornado defense
- Lawyers demand hearing, arguing Brady violation in crypto cases
- Dispute centers on non-custodial nature of Samourai, Tornado Cash protocols
Federal prosecutors have been accused of failure to disclose important evidence in the Samourai Wallet and Tornado Cash cases. The defense lawyers argue that a phone call with senior FinCEN employees could impact their cases. The call reportedly stated that the two non-custodial protocols do not qualify as money services businesses (MSBs).
The dispute revolves around whether Samourai Wallet and Tornado Cash should be classified as MSBs. The defendants are accused of conspiracy to operate an unlicensed money transmitting business. However, the protocols argue that they do not fall under MSB regulations.
Role of Withheld Call in Samourai Wallets Defense
The defense attorneys argue that FinCEN employees stated that the Samourai Wallet did not operate as an MSB. The defense claims that this statement undermines the accusation that Samourais co-founders participated in a criminal conspiracy. Lawyers Keonne Rodriguez and William Lonergan Hill, argue that the co-founders were not required to register with FinCEN.
However, prosecutors argue that the phone conversation was not important because it did not provide official guidance. The government claims that all substantive communications between the prosecution team and FinCEN were disclosed to the defense months before the trial.
The defense lawyers argue that the prosecution violated a Supreme Court ruling which requires the disclosure of substantial evidence. They claim that failure to reveal the phone call made it harder for them to represent their clients. The attorneys have requested the court to examine whether the prosecution violated Brady when they failed to disclose the call.
Tornado Cash Raises Concerns Despite Storms Exoneration
Moreover, a similar dispute has emerged in the Tornado Cash case, where Roman Storm, co-founder of the protocol, faces similar charges. His defense team argues that the prosecution failed to disclose the same phone call. Storms lawyers have re-petitioned the government to search for additional communications with FinCEN about Tornado Cash.
Although the Department of Justice dropped the MSB charge in the Tornado Cash case, Storms legal team insists that the withheld evidence prejudiced his defense. The lawyers claim that failure to disclose the call made it difficult for them to challenge the MSB classification in court.
The two cases are centred on the non-custodial nature of the protocols. The defense team believes this feature could clarify why Samourai and Tornado Cash should not be classified as MSBs. However, prosecutors insist that the two protocols operated differently.
U.S. District Judges Richard M. Berman and Katherine Failla have yet to rule on the motions in the Samourai and Tornado Cash cases.
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Read more: https://www.tronweekly.com/tornado-cash-defense-fires-back-at-prosecutors/
Text source: TronWeekly
