In a development that could have far-reaching implications for cryptocurrency legal proceedings, federal prosecutors in the United States are using a precedent set by the Bitcoin Fog case to counter the acquittal bid of Roman Storm, one of the developers behind the digital asset mixer, Tornado Cash. The prosecutors argue that a recent appellate decision from September 25 strengthens the jurisdiction of the Southern District of New York over charges of money laundering and unlicensed money transfer conspiracy involving Storm.
Bitcoin Fog Ruling Integrated into the Case
On Monday, the legal team lodged a filing that spotlighted the upheld conviction and sentencing of Roman Sterlingov, the operator of Bitcoin Fog, by an appeals court. Bitcoin Fog is known for obfuscating cryptocurrency transactions through mixing services, scattering digital assets across multiple addresses to increase transaction anonymity. This precedent bolsters the argument for jurisdiction in the case against Storm.
Federal prosecutors assert that the Bitcoin Fog decision directly supports their stance against Roman Storm, affirming that the connection to Manhattan suffices for jurisdictional authority.
The District of Columbia Court of Appeals ruled that the venue was appropriate for the four charges related to money laundering, based on evidence that a covert agent executed Bitcoin Fog transactions from an office based in Washington. Similarly, on the unlicensed money transfer allegation, the court found ample evidence indicating the service catered to clients within the region.
Storm’s Case and the Manhattan Connection
Prosecutors emphasized that the use of Tornado Cash within Manhattan establishes a sufficient nexus for the charges against Storm. The brief referenced testimony from Shakeeb Ahmed, who admitted to utilizing Tornado Cash from his apartment in Manhattan, asserting this activity contributed to the alleged conspiracy’s advancement.
In his 2025 motion for acquittal, Storm contended that transactions conducted by Ahmed in Manhattan were insufficient grounds for establishing jurisdiction in New York. He argued that these transactions did not significantly advance the purported conspiracy’s objectives.
In rebuttal, prosecutors maintained that even minor deposits could amplify a mixing service’s operational pool, enhancing its fund-masking capability. They applied this rationale to Ahmed’s Tornado Cash actions, contending it fortified the New York jurisdictional link.
Roman Storm remarked on X that the Department of Justice continues to wield all available tools against him.
Legal Proceedings Still Unresolved
Judge Katherine Polk Failla heard oral arguments concerning Storm’s move for acquittal in April 2026, though she has yet to deliver a verdict. Should the jury remain deadlocked on the money laundering and sanctions conspiracy charges, a retrial is slated for April 26, 2027.
In August 2025, a jury convicted Storm of conspiring to conduct unlicensed money transfer operations, although they could not reach consensus on the other accusations. Following this, in September 2025, Storm’s post-trial motion argued prosecutors failed to substantiate claims that he intentionally facilitated Tornado Cash’s criminal misuses.
