DOJ Cites Bitcoin Fog Ruling in Fight Against Roman Storm…
By Abdelaziz Fathi
AI summary of the source article
In an October 5 filing in the Southern District of New York, federal prosecutors cited the D.C. Circuit's decision upholding convictions against Bitcoin Fog operator Roman Sterlingov to counter Tornado Cash developer Roman Storm's motion for acquittal. The appeals court determined that small undercover transactions conducted within Washington, D.C., were sufficient to establish venue. Applying this logic, prosecutors argue that witness Shakeeb Ahmed's brief deposits from his Manhattan apartment provide adequate venue to prosecute Storm. The case remains before U.S. District Judge Katherine Polk Failla, who has yet to rule on the acquittal motion following Storm's conviction on a conspiracy charge.
Why it matters
If courts accept customer transactions as a basis for venue, developers of decentralized and borderless crypto protocols could face prosecution in any jurisdiction where users interact with their software.
Key facts
- The D.C. Circuit upheld venue for Bitcoin Fog operator Roman Sterlingov based on small transactions conducted by an undercover agent in Washington, D.C.
- Prosecutors argue that user Shakeeb Ahmed's deposits from Manhattan legally establish venue in the Southern District of New York for Storm's case.
- FinCEN withdrew a 2023 regulatory proposal targeting convertible virtual currency mixing on the same day the DOJ submitted its filing.