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Freedom251 › Blog › Bitcoin Fog

DOJ Cites Bitcoin Fog Appeal in Fight Over Roman Storm’s New York Venue

By Freedom251 Team · · 4 min read

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The D.C. Circuit’s Bitcoin Fog ruling did not decide Roman Storm’s acquittal motion. It affirmed Roman Sterlingov’s convictions and held that venue was proper in Washington, D.C., on the evidence in Sterlingov’s case. A report published October 6 says prosecutors cited that ruling in an October 5 filing opposing Storm’s challenge to venue in New York. That gives DOJ an argument to make; it is not a ruling against Storm.

What did the Bitcoin Fog ruling decide?

On September 25, 2026, the U.S. Court of Appeals for the D.C. Circuit affirmed Roman Sterlingov’s convictions on four counts and his 150-month sentence in United States v. Sterlingov, No. 24-3161. Among other issues, the court rejected Sterlingov’s venue challenge, holding that venue was proper in D.C. for the counts in his case.

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The opinion’s conclusion was specific: “Under these principles, we hold that venue is proper in D.C. for all four Counts.” “All four Counts” refers to Sterlingov’s case, not Storm’s.

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Why the court found venue proper in D.C.

The court relied in substantial part on undercover activity by Special Agent Matthew Price in the district. Its opinion recounts a 2019 Bitcoin Fog deposit and withdrawal, as well as a later transaction in which Price told the service his bitcoin came from ecstasy sales and then withdrew funds in D.C. For the substantive money-laundering count, the court reasoned that the alleged unlawful source and withdrawal in the district supported venue under the applicable statute. It also concluded that transfers furthered the conspiracy in D.C. and that there was sufficient evidence Bitcoin Fog served customers there for the licensing counts.

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As background to the evidence, the court describes mixers as pooling bitcoin deposits and withdrawals, which can make it difficult to trace a particular deposit to a later withdrawal. It also discusses investigative methods including clustering bitcoin addresses and associating clusters with known users or entities. Those are the court’s general explanation and the evidentiary setting in Sterlingov; they are not a guarantee that every transaction or service can be traced in the same way.

What is reported about DOJ’s filing in Storm’s case?

PrimeXBT reported on October 6, 2026, that federal prosecutors filed a letter the previous day asking U.S. District Judge Katherine Polk Failla to reject Storm’s challenge to New York venue for money-laundering and money-transmission conspiracy counts. The report says DOJ invoked the recent D.C. Circuit decision. The underlying October 5 letter is not available in the cited reporting, so its detailed reasoning and exact language cannot be confirmed from that account.

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The procedural roles matter: Sterlingov is an appellate court’s decision about a different defendant, service, record, and district. Storm’s filing is a prosecutor’s reported argument in a separate Southern District of New York case. The sources cited here do not establish that the Sterlingov opinion binds Judge Failla or determine how she must rule on Storm’s venue challenge.

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Question Sterlingov / Bitcoin Fog Storm / Tornado Cash
What is being considered? The D.C. Circuit reviewed Sterlingov’s convictions and venue on his trial record. DOJ is reported to have cited that appeal while opposing Storm’s venue challenge in New York.
What is the status? The appeals court affirmed Sterlingov’s convictions and sentence on September 25, 2026. The October 5 filing is reported as DOJ’s position; no ruling on Storm’s venue challenge is established by the cited sources.
Does the ruling decide Storm’s acquittal motion? No. Sterlingov’s appeal concerned Sterlingov’s case. No. A venue dispute and a motion for acquittal are distinct issues.

Does this change Storm’s acquittal bid or retrial?

Not by itself. The October 6 report describes DOJ’s argument over venue; it does not report that Judge Failla ruled on the acquittal motion, and the Sterlingov opinion did not decide that motion. A venue ruling could affect where a charge is tried, but the available sources do not show that this filing resolved Storm’s request for acquittal.

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The latest cited procedural account is The Block’s August 26, 2026 report. It says a jury convicted Storm on one money-transmission count in August 2025 and did not reach a verdict on the money-laundering and sanctions charges. It also says the acquittal motion remained pending then and that Failla had scheduled a retrial on the two unresolved charges for April 26, 2027. Those are the status reported on August 26, not confirmation of the docket as of October 7, 2026; later developments are not established by the cited sources.

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What are the cases about?

Storm is a co-founder of Tornado Cash. In its August 2023 charging announcement, the Justice Department accused Storm and Roman Semenov of conspiracies involving money laundering, sanctions violations, and unlicensed money transmission. The department alleged that Tornado Cash facilitated more than $1 billion in money-laundering transactions and that hundreds of millions of dollars were laundered for the Lazarus Group. Those figures are allegations in the charging announcement, not findings established by that release. DOJ also states that defendants are presumed innocent unless and until proven guilty.

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In a separate case, DOJ’s March 2024 release, updated in February 2025, said more than 1.2 million bitcoin moved through Bitcoin Fog, valued at approximately $400 million at the time of the transactions. That is DOJ’s characterization of the service’s total movement and value; it does not mean that the entire amount was criminal proceeds.

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What to watch next

  • Whether Judge Failla issues an order on Storm’s venue challenge or acquittal motion.
  • Whether the reported April 26, 2027 retrial date remains in place or changes in later docket activity.
  • The reasoning in the October 5 letter, if it becomes available; the October 6 report alone does not establish its detailed argument.

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Bitcoin Fogcryptocurrency lawDOJFederal courtsRoman StormTornado Cash

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