We won't be talking about KYC your honor, except that we will.

Update: the court has endorsed the prosecution's motion, allowing the Government's expert witness to testify to the feasibility of implementing KYC/AML in Tornado Cash; despite the developer no longer being charged with KYC/AML violations.

Earlier this year, the criminal case against Tornado Cash developer Roman Storm took a drastic turn. Following instructions from Deputy Attorney General Todd Blanche to the Department of Justice, the Southern District of New York (SDNY) begrudgingly dropped part of its unlicensed money transmission charge against the developer.

Under USC 18 §1960(b)(1)(B), the Government had effectively deemed Tornado Cash a financial institution, with which the developers would have been required to implement a comprehensive Anti-Money Laundering (AML) framework, as well as Know Your Customer (KYC) checks.

But, since the Government is no longer arguing that Tornado Cash is a financial institution, Judge Failla ruled in pretrial proceedings that the words AML and KYC had no place in the trial against Storm.

A motion filed on Sunday now reveals that the Government seems to continue to try to sneak in KYC testimony – just without saying the words.

...read more at therage.co