Prosecutors Cite Bitcoin Fog Ruling in Roman Storm Case

Federal prosecutors are citing a recent Bitcoin Fog ruling to support trying Tornado Cash co-founder Roman Storm in New York, arguing that the location of user activity can establish jurisdiction.

Prosecutors told Judge Katherine Polk Failla that the U.S. Court of Appeals for the District of Columbia Circuit on Sept. 25 upheld the conviction of Bitcoin Fog founder Roman Sterlingov. The appeals court found that Washington, D.C., had jurisdiction after investigators deposited about $250 worth of Bitcoin into the mixing service from the district.

The government said similar reasoning applies to Storm’s case because user Shakeeb Ahmed accessed Tornado Cash from his Manhattan apartment.

Storm posted the prosecutors’ letter and pointed to the Financial Crimes Enforcement Network’s withdrawal of a proposed 2023 reporting requirement for mixers. The agency withdrew the proposal because it could suppress legitimate activity.

The jurisdiction argument comes as the court considers whether the Tornado Cash-related case should proceed in New York.