US prosecutors cite Bitcoin Fog ruling to support jurisdiction over Tornado Cash founder's New York trial.

October 7: U.S. federal prosecutors submitted a filing to the Southern District of New York court, stating that the D.C. Circuit Court of Appeals' decision upholding the conviction of Bitcoin Fog founder Roman Sterlingov could support jurisdiction for the trial of Tornado Cash founder Roman Storm in New York.

Prosecutors said that in the Bitcoin Fog case, users conducting transactions in the relevant jurisdiction can constitute a basis for venue; Tornado Cash user Shakeeb Ahmed once used the service in his Manhattan apartment, which is sufficient to prove that part of the alleged conduct occurred in New York.

Storm's lawyers previously argued that New York lacks trial jurisdiction and applied to dismiss the conviction. In August 2025, a New York jury found Storm guilty of conspiracy to operate an unlicensed money transmitting business, but the jury did not reach a unanimous verdict on money laundering and sanctions-related charges. A retrial is currently scheduled for April 26, 2027.

Storm countered that the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) this week just withdrew a regulatory proposal targeting international crypto mixing transactions, one reason being market concerns that an overly broad definition of "mixing" could have a chilling effect on lawful activity.