The core dispute in the Bitcoin Fog appeal case lies in whether global crypto services should be subject to U.S. law.

CoinFeed reported on May 13 that, according to The Block, a U.S. federal appeals court heard arguments in the appeal of Roman Sterlingov, operator of the Bitcoin Fog mixer. The core dispute lies in the validity of the Justice Department's theory that global crypto services are subject to U.S. law. Sterlingov was convicted in 2024 of conspiracy to commit money laundering and operating a money transfer business without a license. Defense attorneys argued that the government "artificially created" a jurisdictional juncture by having undercover agents in Washington, D.C., use Bitcoin Fog. Prosecutors countered that Bitcoin Fog knew its services covered U.S. users and should therefore be subject to U.S. law. The judge also questioned the reliability of the "IP overlap" analysis method used by the FBI.