DOJ invokes Bitcoin Fog ruling in potential blow to Roman Storm acquittal bid
Federal prosecutors told a Manhattan federal court that a recent D.C. Circuit decision affirming the convictions of Bitcoin Fog operator Roman Sterlingov supports their argument that venue in New York is proper in parts of Tornado Cash developer Roman Storm’s case. The DOJ pointed to the appeals court’s reasoning that brief transactions originating in a district can establish venue for money-laundering and unlicensed money-transmission counts, and said similar Tornado Cash activity in Manhattan satisfies New York venue requirements.
Why It Matters
The filing links a high-profile appellate ruling about a cryptocurrency mixer to ongoing venue and acquittal disputes in another major crypto criminal prosecution, potentially narrowing Storm’s route to overturn parts of his conviction. How Judge Katherine Polk Failla treats that precedent could shape proceedings in Storm’s case and influence venue arguments in other crypto-mixer prosecutions.
Key Facts
- Case referenced: D.C. Circuit Sept. 25 ruling affirming convictions and sentence of Bitcoin Fog operator Roman Sterlingov
- Venue finding in Bitcoin Fog case: Court held venue in D.C. proper for all four counts; relied on undercover agent conducting Bitcoin Fog transactions from his D.C. office for money-laundering counts
- DOJ argument in Storm case: Bitcoin Fog ruling 'directly supports' that Tornado Cash activity in Manhattan established Southern District of New York venue for money-laundering and unlicensed money-transmission conspiracy charges
- Testimony cited: Shakeeb Ahmed testified he used Tornado Cash from his Manhattan apartment
- Timeline — Storm trial and motions: Storm convicted Aug. 2025 on unlicensed money-transmitting conspiracy; jury deadlocked on money-laundering and sanctions-conspiracy counts; post-trial acquittal motion filed Sept. 2025; judge heard arguments Apr. 2026 and has not ruled yet
Federal prosecutors have invoked a recent D.C. Circuit decision involving the Bitcoin Fog mixer as supplemental authority opposing Tornado Cash developer Roman Storm’s bid for acquittal. In a Monday court filing, the DOJ cited the Sept. 25 appellate ruling that upheld the convictions and sentence of Bitcoin Fog operator Roman Sterlingov, noting the appeals court’s conclusion that venue in Washington, D.C., was proper for both money-laundering and unlicensed money-transmission counts.
The D.C. Circuit’s venue analysis relied in part on evidence that an undercover agent executed Bitcoin Fog transactions from a D.C. office for the money-laundering counts, and on proof that the mixer had served customers in the district for the transmission counts. Prosecutors told the Southern District of New York that the same legal reasoning applies to Tornado Cash: brief or short-lived deposits can still enlarge a mixer’s pool of transactions and thereby assist in obscuring fund flows, which they say shows Ahmed’s Manhattan use of Tornado Cash furthered the alleged conspiracy.
Storm had argued in his 2025 acquittal motion that Shakeeb Ahmed’s transactions from a Manhattan apartment were insufficient to establish venue because those transfers did not advance the conspiracy. The DOJ’s filing counters that transactional activity originating in the district can constitute a venue-supporting act, and it asserted the Bitcoin Fog precedent “directly supports” that position for the money-laundering and unlicensed money-transmission conspiracy counts.
Judge Katherine Polk Failla heard arguments on Storm’s acquittal motion in April 2026 and has not issued a decision. A retrial on the charges where the jury previously deadlocked — the money-laundering and sanctions-conspiracy counts — is scheduled to begin April 26, 2027, provided those counts remain pending. Storm has publicly criticized the DOJ’s continuing prosecution and flagged other government policy developments while the case proceeds.
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