Federal prosecutors on Monday cited a September 25 appellate decision in the Bitcoin Fog crypto mixer case as additional support for their opposition to Tornado Cash developer Roman Storm’s acquittal motion, arguing that the service’s activity in Manhattan is sufficient to establish jurisdiction in the Southern District of New York on two counts—conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business.

Bitcoin Fog Appeal Upheld Jurisdiction on 4 Counts

Prosecutors referenced a recent appellate court decision that affirmed the convictions and sentence of Bitcoin Fog operator Roman Sterlingov. The D.C. Circuit Court of Appeals found jurisdiction in Washington, D.C., on all four counts: for the money laundering counts, because an undercover agent conducted transactions through Bitcoin Fog from an office in D.C.; for the unlicensed money transmission counts, based on evidence of serving customers in that district.

Tornado Cash Activity in Manhattan and Parties’ Arguments

In the Storm case, prosecutors argue that Tornado Cash’s activity in Manhattan is sufficient for SDNY jurisdiction, citing testimony from Shakeeb Ahmed that he used Tornado Cash from his Manhattan apartment. According to prosecutors, even brief deposits help the mixer by expanding the transaction pool, thereby aiding in concealing the movement of funds; they apply this argument to Ahmed’s actions and contend it supports the conspiracy charge. In his 2025 motion, Storm argued that Ahmed’s use of Tornado Cash from Manhattan did not further the alleged conspiracy and therefore does not establish jurisdiction in New York.

Case Status: 2025 Verdict and Possible Retrial in 2027

In August 2025, a jury found Storm guilty of conspiracy to operate an unlicensed money transmitting business, but could not reach a verdict on the conspiracy to commit money laundering and sanctions violations counts. In September 2025, Storm filed a post-trial motion for acquittal, asserting that the prosecution failed to prove he intended to aid criminals. Judge Katherine Polk Failla held a hearing on this motion in April 2026 and has not yet issued a decision. A retrial on the counts where the jury was deadlocked is scheduled for April 26, 2027, if the charges remain.

Storm criticized the DOJ’s filing on X on Monday, stating that the Department of Justice "is still coming at me with everything they have." He also referenced Monday’s Treasury announcement of plans to withdraw a proposed rule on crypto mixers, arguing that authorities are taking contradictory positions on privacy tools.