Federal prosecutors cited a D.C. Circuit appeals court ruling upholding Bitcoin Fog operator Roman Sterlingov's conviction as precedent in their opposition to Tornado Cash developer Roman Storm's acquittal motion. The Monday filing argues the Sept. 25 decision directly supports establishing venue in the Southern District of New York for Storm's case.
The D.C. Circuit affirmed Sterlingov's conviction on all four counts by finding venue was proper in Washington, D.C. For money-laundering counts, the court relied on evidence an undercover agent conducted Bitcoin Fog transactions from a D.C. office. For unlicensed money-transmission counts, the court found sufficient evidence Bitcoin Fog served customers in the district.
Prosecutors apply the same logic to Storm, pointing to testimony from Shakeeb Ahmed that he used Tornado Cash from his Manhattan apartment. Prosecutors contend this use is sufficient to establish New York venue for Storm's money-laundering and unlicensed money-transmission conspiracy charges.
Storm filed his post-trial acquittal motion in September 2025, arguing prosecutors failed to prove he intended to help criminals misuse Tornado Cash. His motion also asserted Ahmed's Manhattan use of Tornado Cash was insufficient to establish venue because those transactions did not directly further the alleged conspiracy.
Federal prosecutors countered that even short-lived deposits help a mixer by increasing the pool of transactions used to obscure fund movement. They said this mechanism applies to Ahmed's Tornado Cash activity and supports their conspiracy claim.
A jury convicted Storm in August 2025 of conspiring to operate an unlicensed money-transmitting business. The jury deadlocked on the more serious money-laundering and sanctions-conspiracy charges, leaving those counts unresolved.
Judge Katherine Polk Failla heard arguments on Storm's acquittal motion in April 2026 but has not yet issued a ruling. A retrial on the money-laundering and sanctions conspiracy counts is scheduled for April 26, 2027, if those charges remain pending.
Storm criticized the Monday filing on X, saying prosecutors are "still coming after me with everything it has." He referenced the Treasury Department's Monday announcement that it would withdraw its proposed crypto-mixer rule, arguing this demonstrates conflicting government approaches to crypto privacy tools.
