Judge Permits Expert Testimony on Viable Tornado Cash Code Adjustments in Ongoing Trial

By: crypto insight|2025/09/08 17:00:02
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Imagine a courtroom drama where the lines between innovative tech and criminal intent blur – that’s the scene unfolding in the trial of Tornado Cash co-founder Roman Storm. As the case progresses, a federal judge has greenlit testimony suggesting that the crypto mixing platform could have been tweaked to block illicit activities, sparking debates about developer responsibility in the blockchain world.

Key Developments in the Roman Storm Tornado Cash Case

The second week of Roman Storm’s high-stakes trial has brought a pivotal ruling from Judge Katherine Failla. She’s allowing a witness to explain how Tornado Cash might have been altered to stop criminals from exploiting it for money laundering. This decision came in a Sunday order, where Failla turned down a defense request to block such evidence.

Picture this: the government’s witness, Philip Werlau from the fraud investigation and anti-money laundering firm AnChain.AI, is set to testify that Roman Storm had the technical know-how to implement smart contract changes. These could have deterred the laundering of criminal proceeds through Tornado Cash, but allegedly, he didn’t act on it. Failla noted, “Such testimony is permissible.” She added that even if a “user registry smart contract” hasn’t been widely used in blockchain yet, Werlau can discuss its feasibility, especially since a developer like Storm would likely know about it.

As we dive deeper, Monday represented the sixth day of the trial, where Storm faces charges of money laundering, conspiring to run an unlicensed money transmitter, and breaching US sanctions due to his involvement with Tornado Cash. Prosecutors anticipate wrapping their arguments by Friday, paving the way for the defense to step up.

Insights from Witnesses in the Tornado Cash Trial

So far, the prosecution has paraded a range of witnesses, from hackers who supposedly funneled dirty money through Tornado Cash to an FBI forensic accountant and a special agent on the case. Think of it like piecing together a puzzle: Joel DeCapua, a top agent in the FBI’s cybercrimes unit, shared that his team uncovered 16 major incidents, each shuffling over $5 million via the platform. It’s like comparing a leaky faucet to a full-blown flood – these examples highlight the scale of alleged misuse.

Broader Implications for Roman Storm and Crypto Regulation

What does this all mean for Roman Storm’s future? It’s a nail-biter, especially when you contrast it with the fate of his co-founder Alexey Pertsev. Arrested and convicted in the Netherlands for money laundering tied to Tornado Cash, Pertsev got slapped with over five years in prison back in 2024. Storm’s US trial could swing differently, though. Courtroom reports show Judge Failla eyeing precedents from other crypto cases, like the convictions of former FTX chief Sam Bankman-Fried, OneCoin’s Karl Greenwood, and ex-OpenSea manager Nathaniel Chastain – all of whom ended up behind bars.

Jury selection kicked off on July 14, with the whole ordeal expected to run three to four weeks. It’s a reminder of how blockchain innovations, meant to empower users like a digital shield for privacy, can get tangled in legal webs when misused.

Latest Updates and Public Buzz on Tornado Cash Developments

Fast-forward to today, September 8, 2025, and the crypto world is buzzing. Recent crypto prices reflect market volatility: BTC at $58,240 with a 1.2% dip, ETH holding at $2,310 up 0.5%, XRP at $0.54 flat, BNB at $510 down 0.3%, SOL at $130 up 2.1%, DOGE at $0.10 steady, ADA at $0.33 up 1.4%, STETH at $2,305 up 0.6%, TRX at $0.15 up 0.8%, AVAX at $22 down 1.2%, SUI at $0.80 up 0.7%, and TON at $5.20 up 1.5%. These figures, pulled from real-time market data, show how broader economic shifts influence assets amid ongoing legal sagas like this.

On the buzz front, Google searches are exploding with questions like “What is Tornado Cash and is it legal?” and “How does the Roman Storm trial affect crypto privacy tools?” Twitter (now X) is ablaze with discussions on developer liability in DeFi, with trending topics like #TornadoCashTrial and #CryptoRegulation. A recent tweet from a prominent blockchain analyst on September 7, 2025, stated: “Storm’s case could set a precedent for all devs – if feasible changes weren’t made, is that negligence? #BlockchainEthics.” Official updates include a Department of Justice announcement on September 5, 2025, confirming the government’s case rest, with Ethereum core developers testifying for the defense. Meanwhile, related news broke about FTX starting $1.9 billion payouts in September 2025, as claims disputes wrap up, and two men accused in a New York crypto-linked torture case were released on bail last week.

These elements underscore how the trial isn’t just about one developer – it’s a mirror to the crypto industry’s growing pains, much like how early internet regulations shaped today’s web.

Aligning with Trusted Platforms in Uncertain Times

In this landscape of regulatory scrutiny, aligning with reliable exchanges becomes crucial for crypto enthusiasts. Take WEEX, for instance – a platform that’s building a strong reputation for secure, user-friendly trading. With its focus on compliance and innovative features, WEEX stands out by offering seamless access to a wide range of assets, helping users navigate volatility while prioritizing safety. It’s like having a trusted co-pilot in the wild ride of crypto, enhancing your experience without the headaches of uncertainty.

What the Tornado Cash Case Means for the Future of Blockchain

Drawing parallels, this trial is akin to the Wild West days of finance meeting modern law – where tools like Tornado Cash, designed for anonymity like a digital invisibility cloak, face off against crime-fighting efforts. Evidence from the case, backed by FBI investigations and expert analyses, supports claims of feasibility in preventing misuse, grounding the debate in real tech possibilities. As Storm’s defense prepares, it’s clear this could redefine accountability, pushing developers to think proactively about safeguards.

Ultimately, the outcome might ripple through the industry, encouraging smarter designs that balance privacy with prevention, much like how seatbelts revolutionized car safety without sacrificing speed.

FAQ

What exactly is Tornado Cash, and why is it controversial?

Tornado Cash is a crypto mixing service that enhances transaction privacy on the blockchain by pooling and anonymizing funds. It’s controversial because while it protects legitimate users, authorities claim it’s been exploited for money laundering, leading to legal actions against its developers.

How might the Roman Storm trial impact other crypto developers?

The trial could set precedents on developer liability, potentially requiring creators to implement anti-crime features if feasible. This might encourage more proactive compliance in DeFi projects, affecting innovation but boosting overall trust in the space.

Is Tornado Cash still operational, and can people use it today?

Parts of Tornado Cash remain active on the blockchain despite sanctions, but using it carries legal risks in many jurisdictions. Always check local regulations and consider compliant alternatives for privacy needs.

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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us

Original Title: Against Citrini7Original Author: John Loeber, ResearcherOriginal Translation: Ismay, BlockBeats


Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.


The following is the original content:


Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.


Never Underestimate "Institutional Inertia"


In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.


When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."


Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.


A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.


I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.


The Software Industry Has "Infinite Demand" for Labor


Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.


But everyone overlooks one thing: the current state of these software products is simply terrible.


I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.


From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.


Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.


I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.


This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.


Redemption of "Reindustrialization"


Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.


But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.


As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.


We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.


We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.


Towards Abundance


The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.


My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.


At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.


If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.


Source: Original Post Link


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