Storm says Chainalysis earned fees as a Tornado Cash relayer

What happened

Roman Storm says court records show Chainalysis, a blockchain analytics firm, earned fees in 2022 for operating as a Tornado Cash relayer. This happened while Chainalysis was also helping prosecutors build their case against Storm, according to his statement.

Confirmed

Global impact / market context

If true, this creates a conflict of interest because Chainalysis profited from the same service it helped prosecute. This could weaken the government's case against Storm and raise questions about how crypto investigations are conducted.

Analyst inference

This news could affect investor confidence in blockchain analytics companies, as their dual roles as service providers and government partners may come under scrutiny. It might also influence how courts view evidence from such firms in future crypto-related legal cases.

Analyst inference

What to watch

1. Watch for whether the court records Roman Storm references are made public, which would confirm or deny his claim about Chainalysis earning fees as a Tornado Cash relayer. Confirmed
2. Investors should monitor how the judge handling Storm's case responds to this conflict-of-interest allegation, as their ruling could set a precedent for using analytics firm evidence in crypto trials. Proposed
3. Observe whether other defendants in crypto cases now challenge evidence from analytics firms that also operate in the crypto ecosystem, potentially slowing down future prosecutions and affecting regulatory enforcement. Analyst inference

Evidence

• cryptopolitan.com