Federal prosecutors have invoked a recent appeals court decision involving the cryptocurrency mixing service Bitcoin Fog as new support in their ongoing case against Tornado Cash developer Roman Storm.
Appeals court ruling used in Storm case
On Monday, federal prosecutors referenced a September 25 appeals court ruling that upheld the conviction and 12.5-year sentence of Roman Sterlingov, the operator of Bitcoin Fog. Bitcoin Fog was a cryptocurrency mixer used to obfuscate the source of digital assets, a service that authorities have tied to large-scale money-laundering operations.
The United States Court of Appeals for the District of Columbia Circuit found that Washington, D.C., served as the proper venue for all charges against Sterlingov. For the money-laundering charges, the court cited evidence showing an undercover agent used Bitcoin Fog for transactions while based in Washington, D.C. For charges concerning unlicensed money transmission, the court highlighted that the service was actively used by customers inside the district.
Prosecutors now argue that this appellate decision directly strengthens their case against Roman Storm. Specifically, they claim that activity involving Tornado Cash in Manhattan is sufficient to establish venue in the Southern District of New York for both the money-laundering and unlicensed money-transmission conspiracy charges pending against Storm.
In support of their argument, prosecutors cited testimony from Shakeeb Ahmed, who testified that he accessed Tornado Cash from his apartment located in Manhattan. Prosecutors argue that, under the logic affirmed by the appeals court in the Bitcoin Fog case, even limited transactions conducted within the jurisdiction can help establish proper venue for prosecution.
Mini dictionary: Tornado Cash is a decentralized, non-custodial privacy solution running on Ethereum that allows users to deposit crypto assets and withdraw them to different addresses, making transaction trails difficult to trace.
Storm’s conviction and motions
Roman Storm was found guilty by a jury in August 2025 of conspiring to operate an unlicensed money-transmitting business. However, the jury was unable to reach a verdict regarding charges of money-laundering conspiracy and sanctions conspiracy, resulting in a deadlock on those counts.
Storm’s defense responded with a post-trial motion for acquittal filed in September 2025. He argued that prosecutors failed to prove he specifically intended to help criminals misuse Tornado Cash for illegal purposes, and questioned whether evidence presented was sufficient to justify prosecution in New York.
Judge Katherine Polk Failla of the Southern District of New York, who presided over the case, heard arguments regarding Storm’s motion in April 2026. She has not yet issued a decision on the acquittal request. Should the charges remain, a retrial on the unresolved counts is currently scheduled for April 26, 2027.
Arguments over New York venue
In his motion, Storm argued that Shakeeb Ahmed’s use of Tornado Cash from Manhattan did not advance the alleged criminal conspiracy, and therefore should not serve as grounds for prosecution in the Southern District of New York.
Federal prosecutors contended that even brief and minor transactions contribute to a mixer service’s effectiveness, by growing the pool of funds used to obscure transaction origins. They believe this principle is equally applicable to Ahmed’s Tornado Cash activities and further supports their claim that such activities advanced the alleged conspiracy.
| Case | Venue Jurisdiction | Main Evidence for Venue | Outcome |
|---|---|---|---|
| Bitcoin Fog (Sterlingov) | Washington, D.C. | Coin mixer transactions conducted by undercover agent in D.C. | Conviction upheld |
| Tornado Cash (Storm) | New York, S.D.N.Y. | Service used by Ahmed in Manhattan apartment | Conviction on one count, retrial pending |
Roman Storm responded to prosecutors’ latest filing in a message on X, stating, “The DOJ is still coming after me with everything it has.”
Prosecutors emphasized that even transactions of short duration can benefit a cryptocurrency mixer by expanding the collective pool used to obscure funds, a point they argue applies to the alleged activities in Manhattan.
