LexLine

LexLine⚖️

Carlo D’Angelo is the host of LexLine⚖️ (DeFi Media, Inc.). Carlo is also a criminal defense lawyer, former law professor and crypto and NFT enthusiast with 25-plus years of experience defending state and federal crimes. To contact Carlo, visit https://linktr.ee/carlodangelo The views and opinions expressed by guests and speakers on this show do not necessarily reflect those of the hosts or their affiliates. Nothing discussed in these podcasts should be considered legal or financial advice and in no way from an attorney-client relationship.

  1. 07/29/2025

    Episode 193: Tornado Cash Trial Explained | Why This Case Could Redefine Crypto Privacy & Developer Rights

    In this episode of LexLine, criminal defense lawyer Carlo D’Angelo—the DeFi Defense Lawyer—dives into one of the most consequential crypto trials in U.S. history: the criminal case against Tornado Cash co-founder Roman Storm. Broadcasting live from the heart of legal commentary, Carlo breaks down what’s at stake in this Manhattan courtroom battle and why the outcome could radically reshape privacy rights, blockchain development, and free speech protections. What You’ll Learn: What Tornado Cash is and how its mixing technology works on the Ethereum blockchain Why the DOJ is charging Storm under the unlicensed money transmitter statute (18 U.S.C. 1960) How privacy-preserving tools like mixers, VPNs, and encrypted messaging apps are being scrutinized under federal law The implications of the Blanche Memo and FinCEN guidance—and how they could be game-changers Why prosecuting open-source software could set a dangerous precedent for developers and investors Real-world consequences: from pig butchering scams to crypto laundering pipelines and how unsuspecting intermediaries are being criminalized Why this case might lead to an appeal—and a potential Supreme Court showdown Why It Matters:If the DOJ secures a conviction, this case could open the floodgates for criminalizing software tools that promote financial privacy—even if misused by bad actors. It’s not just about Tornado Cash—it's about whether code is speech, and who bears responsibility when code is abused.

    30 min
  2. 01/08/2025

    Episode 189: Court Approves Interlocutory Appeal: Could Coinbase vs. SEC Redefine the Howey Test?"

    In a significant legal development, the court overseeing the SEC v. Coinbase case has granted Coinbase’s motion to certify the court's previous order for interlocutory appeal. This decision not only pauses ongoing proceedings but also signals potential ripple effects for the crypto industry and regulatory clarity. Court’s Order Background The SEC sued Coinbase in June 2023, accusing it of operating as an unregistered broker, exchange, and clearing agency. The crux of the case centers on whether the crypto-assets offered on Coinbase’s platform meet the definition of "investment contracts" under the Howey Test, a standard from 1946 used to identify securities. Coinbase contends that the test is outdated and inapplicable to modern digital assets. Court’s Key Findings In its March 2024 ruling:  1. Howey Test Applied: The court analyzed whether the crypto-assets constituted investment contracts.  - Investment of Money: Not disputed.  - Common Enterprise: The court agreed with the SEC that the token values depend on ecosystem development (horizontal commonality).  - Expectation of Profits: The court found Coinbase promoted the tokens with the expectation of ecosystem-driven profits.  2. Rejection of Contractual Obligation Argument: The court dismissed Coinbase’s argument that a formal post-sale obligation is required for an investment contract, emphasizing the focus on economic realities over formalism.  3. Digital Ecosystems as Distinction: The court noted that crypto-assets rely on their ecosystems for value, unlike real estate or collectibles, which possess inherent value.  4. Legal Implications: The ruling left the SEC’s claims largely intact while partially granting and denying Coinbase’s motion for judgment on the pleadings. Interlocutory Appeal Granted The court recognized the broader legal stakes by granting Coinbase's motion for interlocutory appeal. It highlighted the need for appellate guidance on:  - How the Howey Test applies to digital assets.  - Whether the SEC's authority should extend to transactions lacking contractual obligations.  - The potential for a circuit split with conflicting rulings in similar cases (e.g., Ripple Labs).  Why This Matters This case could set a landmark precedent for crypto regulation. If the appeal progresses to the Supreme Court, it might reshape securities laws by clarifying or even redefining the Howey Test for modern financial instruments like digital assets. Next Steps - Proceedings in the trial court are stayed pending the outcome of the appeal.  - The Second Circuit's decision could have industry-wide implications and may set the stage for Supreme Court review. Closing Note This case highlights the ongoing tension between traditional securities laws and the fast-evolving crypto industry. Stay tuned as this legal battle could define the regulatory landscape for years to come.

    12 min

About

Carlo D’Angelo is the host of LexLine⚖️ (DeFi Media, Inc.). Carlo is also a criminal defense lawyer, former law professor and crypto and NFT enthusiast with 25-plus years of experience defending state and federal crimes. To contact Carlo, visit https://linktr.ee/carlodangelo The views and opinions expressed by guests and speakers on this show do not necessarily reflect those of the hosts or their affiliates. Nothing discussed in these podcasts should be considered legal or financial advice and in no way from an attorney-client relationship.