Bitcoin Fog Appeals Decision Threatens Roman Storm's Defense Strategy, DOJ Claims
Federal prosecutors point to a Bitcoin Fog appellate decision as evidence supporting their claim that Tornado Cash transactions in Manhattan provide sufficient grounds to establish jurisdiction for Roman Storm's prosecution in New York.
Government prosecutors have referenced a recent appellate court decision concerning the cryptocurrency mixing service Bitcoin Fog as additional legal authority in their opposition to Tornado Cash developer Roman Storm's motion for acquittal.
According to a filing submitted Monday, prosecutors pointed to a Sept. 25 appellate court decision that upheld both the convictions and sentencing of Roman Sterlingov, who operated Bitcoin Fog.
The appellate court in the D.C. Circuit determined that holding the trial in Washington, D.C., was appropriate for all four criminal counts. Regarding the money-laundering charges, the court based its decision on evidence showing an undercover law enforcement agent had executed Bitcoin Fog transactions from within his D.C. office. As for the charges of unlicensed money transmission, the court determined there was adequate evidence demonstrating Bitcoin Fog had provided services to customers within the district.
Government prosecutors maintained that the Bitcoin Fog appellate decision "directly supports" their legal stance in Storm's prosecution, contending that Tornado Cash operations in Manhattan were adequate to establish jurisdiction in the Southern District of New York for Storm's charges of money-laundering and unlicensed money-transmission conspiracy. They referenced testimony provided by Shakeeb Ahmed, who stated he utilized Tornado Cash from his apartment in Manhattan.
Judge Katherine Polk Failla listened to arguments regarding Storm's motion for acquittal in April 2026 and has yet to issue a decision. A second trial concerning the money-laundering and sanctions conspiracy charges, on which the jury was unable to reach a verdict, is set for April 26, 2027, assuming those charges continue to be active.
A jury found Storm guilty in August 2025 of participating in a conspiracy to operate an unlicensed money-transmitting enterprise but was unable to reach consensus on the money-laundering and sanctions-conspiracy allegations. Storm submitted his post-trial motion seeking acquittal in September 2025, contending that prosecutors had not demonstrated he possessed the intent to assist criminals in misusing Tornado Cash.
DOJ leans on Bitcoin Fog ruling in New York argument
In his acquittal motion filed in 2025, Storm contended that Ahmed's utilization of Tornado Cash from his Manhattan residence was insufficient to establish jurisdiction in New York since the transactions did not advance the purported conspiracy.
Government prosecutors countered that even brief deposits can benefit a mixing service by expanding the pool of transactions utilized to hide the flow of funds. They maintained that this logic is applicable to Ahmed's Tornado Cash activity and strengthens their contention that his utilization of the service advanced the purported conspiracy.
Storm expressed criticism of the filing through an X post on Monday, stating, "The DOJ is still coming after me with everything it has."
He additionally referenced the Treasury Department's announcement on Monday regarding its decision to withdraw its proposed crypto-mixer rule, contending that the government is pursuing contradictory strategies toward crypto privacy tools.