OK - now in US v. Roman Storm, Judge ruling on limiting instruction, inviting a filing tonight. Inner City Press put out book about the case Crypto Tornado & will live tweet, thread below
Judge Failla: On Agent George, I think it's going to be fertile, including for cross examination. But I'm going to let him testify to this. We're going to have to give the jurors [still not in this morning] more time.
Break - will resume in a bit
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AUSA: Mr. Werlau, let's look at GX 3005-37. On transactions between Sept 2020 and August 2022, what percentage of users used the UI or the CLI when interacting with Tornado Cash?
Werlau: UI was 96.2%. CLI, 2.8%. Unknown, 1%.
AUSA: Did you identify patterns with respect to the Ronin hack?
Werlau: They shifted from UI to CLI - the behavior shifted.
AUSA: What changed?
Werlau: Sanctions were announced on the Ronin wallet
Cross examination
Storm's lawyer Klein: Does the Eth get deposited in the UI?
Werlau: It does not.
Klein: And to withdraw it, they need the secret node, correct?
Werlau: Correct.
Klein: The pools became immutable?
Werlau: Yes. I don't know the date when.
Klein: I'll say it was May 2020. The founders couldn't change the pools, and a DAO vote could not change the pools, right?
Werlau: I don't know that.
Klein: But you spent time researching this?
Werlau: I did.
Storm's lawyer Klein: Ethereum is the number two protocol?
Werlau: I would not surprise me
Judge: I'll allow it, but I don't want you testifying.
Klein: Ethereum is well respected?
Werlau: I'd say so. I use it.
Storm's lawyer Klein: One reason you would make the pools immutable would be to make them safe from hacks, right?
Werlau: I take issue with the word safe. It reduces the surface that can be hacked. It reduces one way it could be hacked.
Storm's lawyer Klein: You use services that don't require personal information, don't you - Signal?
AUSA: Objection.
Judge: I'll allow it.
Werlau: Yes I use that. I don't remember what's required to sign up.
Klein: You know Tornado Cash had geoblocking of countries under sanctions?
Werlau: I didn't study that
Storm's lawyer Klein: You have an ENS site, don't you?
Werlau: I do
Klein: And from it I can tell you donated Eth to Ukraine-
AUSA: Objection!
Judge: Sustained
Storm's lawyer Klein: One design choice the founders of Tornado Cash made was to not collect people's personal data, correct?
Werlau: Not that I'm aware of.
Klein: No further questions.
Judge: Re-direct?
AUSA Rehm: None.
Judge: Break
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[After jury out]
Judge: How long is Agent George? We're not resting tomorrow, are we?
AUSA: Well...
Judge: Wow. I have a delicate proceeding at 4. So you'll rest tomorrow morning. Is the Chainalysis hearing still needed?
Klein: We have a phone call.
Another Storm lawyer: Mr. Mirbaba never communicated with Tornado Cash, or even the detective his friend hired. So it's all hearsay.
AUSA: He was the victim of fraud -
Judge: Like Ms. Lin? Or a hack like Ronin bridge?
AUSA: Hack. It went to Tornado
Judge: He's in
Storm's other lawyer: We may be missing a piece of Mr. Mirbaba's 3500 material, Bates Stamp 025
AUSA: We'll look into it immediately
They're back.
Judge: Government, call your next witness.
Moz Mirbaba.
AUSA: Where do you live:
Mirbaba: Denver.
AUSA: What do you work in?
Mirbaba: Insurance.
AUSA: Did you invest in Uranium Finance?
Mirbaba: Yes.
AUSA: How much?
Mirbaba: $100,000
Mirbaba: After 7 days it was all stolen.
AUSA: Where did it go?
Storm's lawyer: Objection!
Judge: I'll issue a limiting instruction.
AUSA: I can withdraw the question. Did you speak with law enforcement?
Mirbaba: Yes.
AUSA: No further questions.
[Mirbaba confused
No cross, no re-direct.
Judge: Thank you for coming.
[Mirbaba still looks confused: he never got to say "Tornado Cash."]
Judge: Next US witness.
Special Agent Stephan George
AUSA: How far'd you get in school?
George: Master in accounting
AUSA: Did you review Tornado Cash?
IRS-CI Special Agent George: Movements out of Crypto dot com. I reviewed blockchain information.
AUSA: Did you review transaction records related to Binance?
Agent George: I did.
Judge: I'll allow his chart as a demonstrative, but not as a formal exhibit. Proceed.
Agent George: I found these deposits tracked to a smart contract associated with Tornado Cash.
Agent George: I traced $533,000 in USDT leaving the Binance account ending in 0eef, it was converted on August 9
AUSA: This dark box here?
George: Correct.
AUSA: An abbreviation of a longer address?
George: Yes. Then it was sent to 3 addresses
AUSA: This document, who was in the conversation?
Agent George: The three founders: Pertsev, Storm and Semenov. Storm wrote, Basically I overloaded 8 million yesterday.
AUSA: And this?
George: Storm wrote, I sent you guys 2.6 million each.
AUSA: What does this tell you?
Agent George: That Roman Storm has control over that Binance account. And you can conclude that Mr. Storm also had access to 2.6 million.
AUSA: Read this one, from Roman Storm
Agent George: Give her a task... to fucking open various offshores... and to buy real estate
AUSA: And this?
George: Semenov writes, I will send some TORN later, to avoid getting busted
AUSA: And what is this?
George: More about the Binance account.
AUSA: I offer it.
Storm's lawyer: Objection!
Judge: Overruled. It may be shown to the jury.
They've back
AUSA: What did you trace next?
Agent George: The funds that left Crypto dot com. I used LIFO - last in, first out. Like in a cookie jar. In the transaction, 149,000 units of USDT left Crypto dot com
AUSA: Next?
George: Address A to Address B 1 - 60K
AUSA: What's this:
Agent George: An email from Ms. Lin to hello at tornado cash.. I am aware she was a witness in this trial.
[NOTE: Prosecutors are directing this at the ground on which Storm's lawyers said they were considering moving for a mistrial]
Judge: This is a limiting instruction: you may not consider Ms. Lin's letter for the truth of what is asserted in it.
AUSA: No further questions.
Judge: Cross?
Storm's lawyer Axel: Did your previous expert disclosures say you were looking into Ms. Lin?
No.
Storm's lawyer Axel: Did you see a tweet that the prosecutors sent you?
Agent George: I saw a link to X in an email but I didn't click on it.
Judge: So move on
[Seem it was a retweet, about witness DeCapua's testimony
[Whatever tweet was emailed by the prosecutors, Judge Failla has ruled it is not coming in]
Storm's lawyer Axel: If you have an intervening transaction after a hack-
Agent George: If 10 USDT came in, and 3 went out, I would consider the 7 in the next
Judge Failla: We're coming to the end of our day, counsel
Storm's lawyer Axel: You only looked at some of these transactions, right?
Agent George: Right.
Judge: US may rest tomorrow.
Adjourned
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Note: After jury left
AUSA: We may rest our case before lunch tomorrow.
Judge: Defense witnesses?
Storm's lawyer Klein: Two or three doctors; a witness we want immunity for, maybe a Chainalysis witness.
Judge: Charge conference Tuesday? I must run.
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