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Federal prosecutors reportedly cited a recent Bitcoin Fog appeals ruling while opposing Roman Storm’s challenge to New York venue on two conspiracy counts. The ruling affirmed Roman Sterlingov’s convictions in a separate case; it did not decide Storm’s venue dispute or his motion for acquittal. The reported filing is an argument by prosecutors, not a decision by the judge.
What the Bitcoin Fog ruling means for Roman Storm
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. The appeals court held that venue was proper in Washington, D.C., on the record in Sterlingov’s prosecution.
PrimeXBT reported on October 6 that prosecutors had cited the decision in an October 5 filing asking U.S. District Judge Katherine Polk Failla to reject Storm’s challenge to venue in New York for the money-laundering and money-transmission conspiracy counts. The specific filing has not been independently reviewed here, so its detailed arguments cannot be confirmed from the available reporting.
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The ruling gives prosecutors a recent appellate decision they can invoke in a venue argument. It does not determine whether New York is a proper venue for Storm’s charges: Sterlingov and Storm are different defendants, the alleged services and records differ, and the cases are in different courts. The available sources do not establish that the D.C. Circuit opinion binds Judge Failla in the Southern District of New York.
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How the two cases differ
| Question | Bitcoin Fog / Sterlingov | Tornado Cash / Storm |
|---|---|---|
| What happened | The D.C. Circuit affirmed Sterlingov’s convictions and sentence on September 25, 2026, including its conclusion that venue was proper in D.C. (D.C. Circuit opinion, No. 24-3161.) | Prosecutors reportedly filed a letter on October 5, 2026, opposing Storm’s challenge to New York venue; the report does not establish that the judge has ruled. (PrimeXBT, October 6, 2026.) |
| Venue at issue | Whether Sterlingov’s prosecution could be brought in D.C., based on that case’s trial record. | Whether New York is a proper venue for two conspiracy counts against Storm, based on a different case record. |
| Procedural posture | An appellate court decision reviewing convictions and sentence. | A reported prosecution argument in a venue dispute, distinct from Storm’s acquittal motion and any retrial. |
Why the D.C. Circuit upheld venue in Sterlingov
The appeals court’s analysis relied in part on transactions involving undercover Special Agent Matthew Price in D.C. The opinion described a 2019 Bitcoin Fog deposit and withdrawal, as well as a later undercover transaction in which Price told the service that 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 of the funds and the withdrawal in D.C. supported venue under the relevant statute. For conspiracy, it concluded that transfers furthered the conspiracy in D.C. It also found sufficient evidence that Bitcoin Fog served customers in the district for the licensing counts.
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The court summarized the transaction venue statute, 18 U.S.C. § 1956(i)(3), as allowing prosecution in any district where a person conducts “any portion of [a] transaction.” That statutory language is part of the court’s explanation of Sterlingov’s case; it is not a ruling about Storm’s case.
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What is—and is not—known about DOJ’s filing
PrimeXBT’s October 6 report is the source for the claim that DOJ filed a letter on October 5 and invoked the Bitcoin Fog decision. Without the letter itself, the precise reasoning prosecutors offered, the authorities they relied on, and any qualifications in the filing remain unconfirmed. Nor does the report establish that Judge Failla has accepted the argument or issued an order on venue.
That distinction matters because an appellate ruling in one prosecution and a prosecutor’s filing in another are different kinds of legal developments. Sterlingov’s appellate result is a court holding on his record. The reported filing is DOJ’s position on Storm’s venue challenge, which remains for the judge to consider.
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Storm’s acquittal motion and retrial status
The Block reported on August 26, 2026, that a jury had convicted Storm on one money-transmission count in August 2025 and had not reached a verdict on the money-laundering and sanctions charges. That report said Failla had scheduled a retrial on the two unresolved charges for April 26, 2027, and that Storm’s acquittal motion was still pending at that time.
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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteThose are the latest procedural details in the cited report, not confirmation of the docket’s status on October 7, 2026. The reported dispute over venue should not be treated as a decision on the acquittal motion: the sources available do not show that the venue filing resolves that motion or changes the reported retrial date. Later docket activity may have changed either status.
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Background: the allegations in Storm’s case
In its August 2023 charging announcement, the Department of Justice 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. These were allegations in the charging announcement, not adjudicated findings in that release. DOJ’s announcement charged Storm and Roman Semenov with conspiracy counts involving money laundering, sanctions violations, and unlicensed money transmission, and noted that defendants are presumed innocent unless and until proven guilty.
In a separate Bitcoin Fog background release, DOJ said more than 1.2 million bitcoin moved through the service, valued at approximately $400 million at the time of the transactions. That is DOJ’s characterization of the total movement and value; it does not establish that the entire amount represented criminal proceeds.
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