The Ministry of Justice advances retrials, privacy tools remain resilient

SnapshotBot · 2026-03-10T21:30:01+00:00

In the crypto market, tweets related to the Department of Justice's reexamination have sparked different opinions, revealing contradictions between the Biden administration and the Trump administration on crypto policies. Despite the overall market stability, investors have shown a muted response to the Storm case, with privacy tokens like ZEC and MONERO being more favored. Analysts believe that developers and long-term holders will benefit as policies become clearer, while pure short-term traders are at a disadvantage. It is expected that if a pardon occurs in the summer, risks will decrease. Overall, the market's sensitivity to this event has not yet been fully reflected.

SnapshotBot

2026-03-10 21:30:01

Abstract generation in progress

Policy signals conflict, developers can only watch

Storm’s tweet characterizes the DOJ’s push for a re-hearing as a clash between “law enforcement inertia during Biden’s era” and “friendly crypto signals from the Trump administration”—the latter including positive statements from the Treasury Department on mixers and some easing of sanctions. The issue is: even if the overall environment warms up, SDNY prosecutors still insist on “treating code as crime.” Market response? Almost none. Tornado Cash’s TVL remains around $480 million, with fewer than 120 daily active users; after the news, TORN only rose 1.7%. Investors clearly see this as an isolated case, not a risk signal for the entire sector. On-chain fund flows stay at $3-4 million daily, indicating users have long dispersed into alternatives like Railgun.

This tweet was retweeted by over 15 major accounts, including @EleanorTerrett’s call for clemency (28,000 views). The narrative constantly contrasts with the Samourai Wallet case. Legal observers like Amanda Tuminelli from DeFi Education Fund have already pointed out issues with evidence collection and witness relevance in the first trial (reported by multiple media). The community remains divided: developers emphasize “code is speech,” traders look for privacy token trading opportunities. ZEC, as a hedge, rose 9.5%. The macro narrative also helps—Trump’s remark that “the crypto war is over” hints that escalation is unlikely, aligning with his usual tendency to pardon.

“DeFi doomsday” is exaggerated: Although social media amplifies compliance storms, the Treasury Department explicitly acknowledges in the GENIUS Act report that mixers have legitimate privacy uses. The overall DeFi TVL across the industry shows no significant fluctuation.
Trading requires select targets: Avoid chasing TORN’s high volatility; prefer ZEC or MONERO—if the Storm case drags on without a verdict, on-chain signals could support 20-30% upside.
Key risk: funds: Storm’s legal defense relies on donations. If delays in re-hearing persist, donation fatigue could weaken his defenses. Fundraising by crypto advocacy groups can serve as an early indicator.

Perspective	Focus	Market Reaction	My Judgment
Overreach skeptics (builders, privacy advocates)	Treasury’s recognition of mixer privacy; sanctions easing reported by Decrypt/The Block	Expect policy softening, ZEC up ~9%	Higher probability—early positioning for “pardon/easing” narrative yields real benefits
Compliance camp (more institutional, risk control)	SDNY letter pushing for October re-hearing; “up to 40 years” risk reported by Cointelegraph	TORN initially dips then recovers, no DeFi sell-off	Overstated—the market has partly priced in possible Trump intervention
Narrative traders (Crypto Twitter)	“Code is speech” tweet retweeted 208 times/46 replies; @TrustlessState calls for clemency	Short-term sentiment boost, TORN +1.7%	Effective but fleeting—if no White House action before April, consider reducing positions on rallies
On-chain analysis (Dune, etc.)	TVL stable at ~$480M, DAU on 3/9 was 114; protocol fees around $6,700	Focus on usage resilience rather than legal drama	Valid signal—hold logic unchanged, but watch for DAU dropping below 100

Broader context: Trump’s memo on DAG positions the DOJ as a “non-regulator,” making the re-hearing seem more bureaucratic inertia than a unified policy. Privacy tools get positive narratives, but the hidden risk is that “uncertainty prolongs” could freeze DeFi development—precisely where institutions like Paradigm can influence through advocacy.

What does this all mean?

Removing the noise: Under a generally friendly administrative tone, SDNY’s actions are increasingly isolated. Data supports this—TORN shows no abnormal volume, tokens like AAVE, UNI remain stable, no signs of contagion. Policy groups like Solana Policy Institute are pushing bills like the Blockchain Regulatory Certainty Act to protect developers—treating the Storm case as a “case for advocacy,” not an “apocalypse warning.”

Core conclusion: The market has yet to fully realize this is essentially a “non-event.” Traders ignoring DOJ noise are more likely to catch privacy token rebounds; builders and long-term holders will benefit as policy and administrative rhetoric gradually align. If a pardon window appears this summer, the risk of spillover from re-hearing is likely suppressed above 80%.

Summary: It’s still somewhat early but not too early for this narrative: the most advantage goes to narrative-driven traders and long-term holders, suitable for accumulating top privacy assets on dips; builders should leverage this window to advance product and compliance integration; short-term traders chasing TORN volatility are at a disadvantage. If a pardon materializes this summer, early positioning benefits the most; if delays and DAU drops below 100, risk-off will first hit weaker assets.

TRUMP0.65%

ZEC-6.87%

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