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Crypto Regulation

US Prosecutors Cite Bitcoin Fog Ruling to Support Tornado Cash Trial in New York

US federal prosecutors told Judge Katherine Polk Failla that the D.C. Circuit’s September 25 ruling upholding Bitcoin Fog founder Roman Sterlingov’s conviction supports trying Tornado Cash defendant Roman Storm in New York. The appeals court found Washington, D.C. had jurisdiction because agents deposited about $250 in bitcoin into Bitcoin Fog from the district. Prosecutors argued the same logic applies since user Shakeeb Ahmed accessed Tornado Cash from his Manhattan apartment.

Original source

AI take

This is a jurisdictional play, not a merits argument: prosecutors are using a money-transmitting precedent to keep a high-profile case in their preferred venue. The D.C. Circuit's reasoning turned on where government agents initiated transactions, which could make venue harder to challenge for developers whose code is accessed from anywhere. The practical effect is that Tornado Cash's trial location may hinge less on the software's nature than on a user's physical location, an outcome worth watching for how it shapes future crypto prosecutions.

Generated by AI for reference only.

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