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Bitcoin Fog Appeal Tests U.S. Reach Over Overseas Crypto Services

The U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments in Roman Sterlingov's appeal, a case tied to the crypto mixing service Bitcoin Fog, The Block reported. Judges focused on whether prosecutors offered enough proof that Bitcoin Fog operated in Washington, D.C., and whether U.S. laws banning unlicensed money transmitting can be applied to global crypto services that cater to U.S. users. The panel also pressed on the FBI's methodology, questioning the strength of evidence linking Sterlingov to Bitcoin Fog based on "IP overlap" analysis. Sterlingov was convicted in 2024 on counts including money laundering conspiracy and running an unlicensed money transmitting business. The decision could influence how far Section 1960 extends in holding developers and providers of crypto privacy tools accountable.
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