Federal Prosecutors Leverage Bitcoin Fog Ruling in Tornado Cash Case
- Federal prosecutors argue that the conviction of Bitcoin Fog founder Roman Sterlingov supports the trial of Roman Storm in New York.
- The D.C. Circuit upheld Sterlingov’s conviction, citing a $250 Bitcoin transaction as establishing venue.
- Prosecutors claim Shakeeb Ahmed’s use of Tornado Cash from his Manhattan apartment is sufficient to establish venue for Storm’s case.
- Storm’s retrial on two deadlocked counts is scheduled for April 26, 2027, after a Manhattan jury convicted him in August 2025 on other charges.
- FinCEN withdrew a proposed rule requiring reporting on international crypto mixing transactions due to concerns over its broad definition.
Federal prosecutors are using the precedent set by the Bitcoin Fog case to argue that Roman Storm’s trial should remain in New York, based on similar usage patterns of Tornado Cash by a user in Manhattan.
The decision highlights ongoing legal challenges surrounding cryptocurrency mixers and their use in illicit activities, with implications for how venue is determined in such cases. (Source)
