US court hears appeal in Bitcoin Fog case, jurisdiction in focus

A U.S. federal appeals court has held a hearing for the appeal of Roman Sterlingov, founder of the crypto mixing service Bitcoin Fog, The Block reported. The central issue is whether U.S. money transmission laws and the jurisdiction of Washington D.C. can be applied to an internet-based cryptocurrency service operating overseas. The defense team argued that the FBI artificially created jurisdiction through an undercover investigation, while prosecutors countered that the service is subject to U.S. law because it was offered to American users. The court also closely examined the reliability of the FBI's IP overlap analysis evidence.