💬
🤖
AI Support
24/7 online · instant AI reply
✕
← Back
1h ago · Decrypt

Prosecutors Cite Bitcoin Fog Ruling Against Roman Storm's Venue Challenge

Federal prosecutors have >told the judge overseeing Roman Storm's Tornado Cash case that an appeals court's decision upholding the conviction of Bitcoin Fog founder Roman Sterlingov supports their position that Storm was properly tried in New York. Tornado Cash and Bitcoin Fog are coin mixers, software that pools users' crypto to break the on-chain link between where funds come from and where they go. The letter, filed Monday with Judge Katherine Polk Failla in the Southern District of New York, cites the D.C. Circuit's September 25 ruling, which affirmed Sterlingov's conviction and 150-month sentence. Storm's motion for acquittal, which challenges venue among other grounds, was argued in April and remains undecided. A Manhattan jury convicted Storm in August 2025 of conspiring to operate an unlicensed money transmitting business and deadlocked on money laundering and sanctions charges. The letter addresses the money laundering conspiracy count and the money transmitting count. The Constitution requires that a crime be tried where at least part of it took place. In Sterlingov's case, the D.C. Circuit found venue proper in Washington based largely on a sting in which a special agent deposited about $250 worth of >Bitcoin into Bitcoin Fog from D.C. and withdrew almost all of it the next day, according to the opinion. Prosecutors argue the same reasoning applies to Shakeeb Ahmed, a Tornado Cash user who testified he accessed the service "in [his] apartment in Manhattan." Storm's lawyers had argued that Ahmed's funds sat in the pools too briefly

📌 Recommended Exchanges

OKX | Binance | Bybit | Bitget | Gate.io


AI Analysis:

🦊 Nova's Take Prosecutors are using the Bitcoin Fog precedent to keep Roman Storm's Tornado Cash trial in New York, signaling that US authorities intend to treat privacy-mixer developers as criminally liable regardless of where the software was deployed. This reinforces a widening legal net over privacy tooling, not just the mixers themselves. 📊 Market Impact Short-term, privacy-adjacent tokens like TORN, XMR, and ZEC face renewed regulatory overhang and possible exchange delistings, keeping sentiment weak. Mid-term, the case adds structural legal risk to any DeFi protocol with anonymity features, which could cap upside on privacy-narrative plays even in a bull market. 💡 Trading Advice Stay cautious on privacy coins and mixer-linked assets — treat any rally as a chance to reduce exposure rather than chase. If you hold TORN or similar, keep tight stops and size positions assuming headline-driven volatility; this is a legal-risk story, not a fundamentals one. ⚠️ For reference only — always control your risk.

Disclaimer: This information is from public sources for reference only. Traceless does not guarantee accuracy.

💬 0
🏪 Strategies

💬 Comments

🔑 Login to leave a comment
No comments yet. Be the first!