Federal prosecutors are using a new Bitcoin Fog appeal to defend trying two counts against Roman Storm in New York. Their Oct. 5 letter asks Judge Katherine Polk Failla to reject his venue challenge on the money-laundering and money-transmission conspiracy counts. Storm co-founded Tornado Cash, a cryptocurrency mixer that obscures transaction trails.

The filing arrived as Treasury moved to withdraw a broad mixer-reporting proposal. The continuing case turns on prosecutors' allegation that Storm knowingly participated in criminal activity, while the policy changes recognize lawful privacy and limit particular charging decisions. Whether his software work crossed that criminal boundary remains disputed.

Storm, posting as @rstormsf , described potential imprisonment as punishment “for writing code” and contrasted the case with Treasury's retreat. His criticism captures the stakes for privacy developers, but the latest filing concerns where the case can be tried.

Storm already has an August 2025 conviction on one money-transmission conspiracy count carrying a statutory maximum of five years. An Aug. 25, 2026 court order scheduled his retrial for April 26, 2027, citing his pending acquittal motion and requested continuance.

Southern District of New York prosecutors rely on the D.C. Circuit's Sept. 25 decision in United States v. Sterlingov , involving Bitcoin Fog, a different cryptocurrency mixer. Prosecutors cite its venue holdings as persuasive authority for Storm's pending challenge.

Their argument centers on a Manhattan customer, Shakeeb Ahmed. They say his deposits helped enlarge the anonymity pool, making funds harder to trace, even though the money remained there only briefly. They also argue that serving a customer in the district supports venue for the money-transmission count.

Treasury's Financial Crimes Enforcement Network is withdrawing its 2023 finding and proposed enhanced reporting and recordkeeping measure for international cryptocurrency mixing. The withdrawal notice , filed Oct. 5 for Oct. 6 publication, cites concerns about a “chilling effect on legitimate activity” and burdens on financial institutions.

FinCEN recognizes lawful financial privacy while retaining monitoring for money laundering, terrorist financing and other illicit activity. The withdrawal addresses an administrative reporting proposal. It does not repeal criminal offenses or decide Storm's case.