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BTC 
ETH Federal prosecutors cited the "Bitcoin Fog" ruling to oppose Tornado Cash developer Storm's acquittal.
In a motion to reject Tornado Cash developer Roman Storm's acquittal, federal prosecutors cited a recent appeals court ruling involving the cryptocurrency mixer "Bitcoin Fog" as additional legal basis.
In documents filed Monday, prosecutors cited an appeals court decision dated September 25. The ruling upheld the conviction and sentencing of Bitcoin Fog operator Roman Sterlingov. The U.S. Court of Appeals for the District of Colombia Circuit ruled that Washington, D.C., has appropriate jurisdiction over all four charges. For the money laundering charge, the court relied on evidence that an undercover agent conducted the Bitcoin Fog transaction from his Washington, D.C. office. Regarding the allegation of unauthorized money transmission business, the court held that there was sufficient evidence to show that Bitcoin Fog had customers in the area.
Prosecutors said the Bitcoin Fog ruling "directly supports" their position in the Storm case. They argued that the Tornado Cash activity in Manhattan was sufficient to establish jurisdiction in the Southern District of New York to prosecute Storm for money laundering and conspiracy to engage in an unauthorized money transmission business. Prosecutors cited testimony from Shakeeb Ahmed, who said he used Tornado Cash in his Manhattan apartment.
Judge Katherine Polk Failla heard arguments on Storm's plea for not guilty in April 2026, but no ruling has been made so far. If the money laundering and sanctioning conspiracy charges that caused a jury deadlock remain valid, a retrial will be held on April 26, 2027.
In August 2025, a jury found Storm guilty of conspiracy to operate an unauthorized money transmission business, but failed to reach a consensus on money laundering and sanction conspiracy charges. In September 2025, Storm filed a post-trial motion for acquittal, arguing that prosecutors had failed to prove that he intended to help criminals abuse Tornado Cash.
The Justice Department relies on Bitcoin Fog decision in New York litigation
In a 2025 motion for acquittal, Storm argued that Ahmed's use of Tornado Cash in his Manhattan apartment was not sufficient to establish New York jurisdiction because the transactions did not advance alleged collusion.
Prosecutors countered that even temporary deposits help the currency mixer increase the pool of transaction logs used to conceal the flow of funds. They believe that this reasoning equally applies to Ahmed's use of Tornado Cash and support their argument that Ahmed's use of the service furthers alleged collusion.
Storm criticized the document via Platform X (formerly Twitter) on Monday, writing: "The Justice Department is doing everything it can to hunt me down."
He also cited the U.S. Treasury Department's announcement on Monday to withdraw its proposed cryptocurrency mixer rules, pointing out that the government has taken contradictory attitudes towards cryptocurrency privacy tools.
