I’m here for today’s press briefing at 1:00 PM EST. Planning to ask about the CBDC language in GENIUS as well as de minimis tax exemptions for Bitcoin transactions. Be sure to tune in!

Below is a recap of what happened yesterday in the Tornado Cash trial based on some solid reporting from a few different sources. The Taiwan-born woman currently living in the U.S. who began her testimony on Tuesday resumed it on Wednesday. This woman lost over $200k to a pig butchering scam initiated through a WhatsApp message. Some of the funds from the scam were put through Tornado Cash (TC). This woman said that her request to TC for help went unanswered. A lawyer from BitMart, which was hacked for over $200 million in 2021, also testified yesterday. Some of the funds from the hack were put through TC. Storm was asked to help retrieve the funds but said he couldn't given he didn't have control over the pool through through which the funds were laundered. Andy Ho, CTO and co-founder at Sky Mavis, the company behind Axie Infinity and the Ronin network, also testified. Ho detailed how hackers stole over $600m before using TC to launder the funds. According to CoinDesk, prosecutors "attempted to paint a portrait of Storm as someone who refused to lift a finger to help hack victims." During cross examinations, the defense insinuated that Storm couldn't help retrieve the funds put through TC because the protocol is decentralized. 23-year-old Andre Llacuna also testified. Llacuna detailed how he made $1m from an NFT scam he'd orchestrated in 2022. Llacuna put the proceeds from the scam through TC. Llacuna was found guilty on two counts of fraud and testified in hopes of receiving a more lenient sentence. Justin Bram, a TC proponent, also testified. Bram explained how TC makes transactions untraceable. Bram came to co-manage a pool of TC tokens (TORN), but stepped away from TC in 2021 when he learned that hackers were putting funds through TC. Bram also noted that Storm never asked him to make videos "pitching Tornado Cash to money launderers," according to DL News. Outside of what happened in the courtroom, in a letter submitted to the court on Wednesday, New York Attorney and former SEC Chair Jay Clayton asked Judge Failla to preclude arguments based on privacy rights. The letter was submitted seemingly to bolster the prosecution's effort to stop the defense from having witnesses involved in crypto-related torture and kidnapping scenarios from taking the stand. (I assume these witnesses would argue that financial privacy is impt.) The prosecution objected twice during opening statements by the defense's Ms. Axel on Tuesday when Ms. Axel brought up the issue of physical safety of those who transact with crypto. Sources:

Hack ‘Victims’ Say Tornado Cash Offered No Help in the Wake of Exploits: Day 2 of Roman Storm Trial

Tornado Cash developer Roman Storm told one victim’s lawyer that he couldn’t do anything to retrieve the funds given the decentralized nature o...

DL News

Axie Infinity exec, NFT scammer testify in Roman Storm trial

A Sky Mavis executive and former scammer testified on the first full day of Roman Storm’s trial. Crypto developers are attending the trial in a ...

Cointelegraph

Roman Storm Prosecutors Seek To Block Testimony on Crypto Kidnappings

Tornado Cash co-founder Roman Storm returned to court on Wednesday for the third day of his criminal trial.

I cannot attend the Tornado Cash trial today but will be back in the courthouse tomorrow to cover it.

On the second day of the Tornado Cash trial, the prosecution and defense delivered their opening statements, offering opposing accounts of why Roman Storm created Tornado Cash. Here's my recap:

Bitcoin Magazine

Tornado Cash Trial Day 2: Prosecution And Defense Tell Different Stores About Roman Storm

With a jury finalized, the prosecution and defense made their opening statements, each featuring a very different slant on Tornado Cash co-founder ...

Day 2 of the Tornado Cash trial is underway. Expecting a good portion of the day to be dedicated to jury selection again. We may hear opening statements later in the day, though. Will be sure to provide updates in this thread throughout the day.

“In the media, social media, and in D.C. discourse, Bitcoin talk is very politicized. [But] our data shows that there’s a great silent majority of bitcoin owners who are either left wing or in the middle… They’re not [the one’s who] speak up on Twitter.” @Troy Cross

On day one of the Tornado Cash trial, the defense raised questions around the legitimacy of some of the evidence submitted to the court, while the jury selection process began. More in my latest:

Bitcoin Magazine

Tornado Cash Trial Begins With Discussions Around Motions In Limine And Data Custodians

The judge addressed questions and requests from the defense regarding updated motions and the legitimacy of certain data that will be used as evide...

UPDATE FROM DAY 1 OF THE TORNADO CASH TRIAL