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Bitcoin Fog Founder Was Sentenced to 12.5 Years in Prison

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Bitcoin Fog founder Roman Sterlingov was sentenced to 12.5 years in prison for laundering millions from darknet markets through his cryptocurrency mixing service.
Bitcoin Fog processed untraceable transactions over a decade, obscuring funds tied to illegal activities, according to prosecutors.

According to Bloomberg, a U.S. federal judge has convicted the Bitcoin Fog founder Roman Sterlingov to 12 and a half years in prison in connection with money laundering activities tied to darknet markets.

Bitcoin Fog Founder Gets 12.5 Years for Money Laundering

Bitcoin Fog founder Roman Sterlingov was found guilty on charges of conspiracy to money laundering, and operation of an unregistered money transmitting service.

Bitcoin Fog, an anonymity service initiated by Sterlingov, obscured the source of digital currency transactions and, according to the government, was used to transmit more than $10 million in illegal proceeds from 2011 to 2020, partly from customers of darknet marketplaces where narcotics were sold.

Prosecutors said the company’s operation processed transactions worth hundreds of millions of dollars over a decade and obscured the taint from transactions.

Court Rejects Government’s 30-Year Request, Imposes Lighter Sentence

Presiding over the case in Washington, Judge Randolph Moss handed a 150-month sentencing well below what the government asked for 30 years and below the 50-year maximum fixed by federal sentencing guidelines. Apart from jail time, Sterlingov was also ordered to forfeit $395 million, and his interest in a Bitcoin Fog wallet was valued at more than $103 million in Bitcoin.

Sterlingov repeatedly stated through the trial process that, though he used Bitcoin Fog, it wasn’t under his control. His attorney, Tor Ekeland, further mentioned there was no direct proof to link him with the management of the platform. The defense attorneys recommended he be sentenced for seven and a half years, citing there was no testimony by a witness or operational log to prove his involvement in the case.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.