Prosecutors Use Bitcoin Fog Precedent in Tornado Cash Venue Challenge

Bitcoin Fog ruling — U.S. prosecutors have invoked a recent ruling from the Bitcoin Fog case to oppose Tornado Cash co-founder Roman Storm’s motion to dismiss charges against him on venue grounds.

In a filing submitted on October -7, 2026, government lawyers argued that the court’s decision in the Bitcoin Fog case, where the defendant was convicted of money laundering and operating an unlicensed money-transmitting business, supports their position that Storm can be tried in Washington, D.C. They contend that because Tornado Cash’s smart contracts were accessible globally, including in the district, the venue is appropriate.

Storm’s defense team had moved to dismiss, arguing the charges should be heard in another jurisdiction. Prosecutors countered that the nature of the alleged crimes—conspiring to commit money laundering and violating sanctions laws through the operation of the crypto mixer—means the case can proceed where it was filed.

Storm responded to the development on social media, pointing out that the Financial Crimes Enforcement Network (FinCEN) had previously withdrawn a proposed rule targeting cryptocurrency mixers over concerns it could stifle legitimate financial privacy tools.