Federal prosecutors have cited a recent appeals court ruling in the Bitcoin Fog case as supplemental authority in their opposition to Tornado Cash developer Roman Storm’s bid for acquittal, arguing that Tornado Cash activity in Manhattan was enough to establish venue in the Southern District of New York for parts of Storm’s case.
In a Monday filing, prosecutors pointed to a Sept. 25 appeals court decision that affirmed the convictions and sentence of Bitcoin Fog operator Roman Sterlingov.
The D.C. Circuit said venue in Washington, D.C., was proper on all four counts. On the money-laundering counts, the court relied on evidence that an undercover agent carried out Bitcoin Fog transactions from his office in Washington. On the unlicensed money-transmission counts, the court found sufficient evidence that Bitcoin Fog had served customers in the district.
Prosecutors tie Bitcoin Fog ruling to Storm case
Prosecutors said the Bitcoin Fog decision “directly supports” their position in Storm’s case. Their argument is that Tornado Cash activity in Manhattan was sufficient to establish venue in the Southern District of New York for the money-laundering conspiracy and unlicensed money-transmission conspiracy charges against Storm.
They pointed to testimony from Shakeeb Ahmed, who said he used Tornado Cash from his apartment in Manhattan. Prosecutors argue that this use of the service is enough to connect the case to New York.
Storm says Manhattan use did not advance the alleged conspiracy
In his 2025 motion for acquittal, Storm argued that Ahmed’s use of Tornado Cash from his Manhattan apartment was not enough to establish venue in New York because those transactions did not further the alleged conspiracy.
Prosecutors answered that even short-lived deposits can assist a mixer by increasing the pool of transactions used to obscure the movement of funds. They said the same reasoning applies to Ahmed’s Tornado Cash activity and supports their claim that his use of the service furthered the alleged conspiracy.
Judge has not ruled; retrial is scheduled for April 2027
Judge Katherine Polk Failla heard arguments on Storm’s acquittal motion in April 2026, and she has not ruled yet.
A retrial on the money-laundering conspiracy and sanctions-conspiracy counts, where the jury deadlocked, is scheduled for April 26, 2027, if those charges remain pending.
A jury convicted Storm in August 2025 of conspiring to operate an unlicensed money-transmitting business. The same jury deadlocked on the money-laundering conspiracy and sanctions-conspiracy charges. Storm then filed his post-trial motion for acquittal in September 2025, arguing that prosecutors had failed to prove he intended to help criminals misuse Tornado Cash.
Storm criticizes DOJ filing and points to Treasury move
Storm criticized the filing in a Monday post on X, writing, “The DOJ is still coming after me with everything it has.”
He also cited the Treasury Department’s Monday announcement that it would withdraw its proposed crypto-mixer rule, arguing that the government is taking conflicting approaches to crypto privacy tools.