Bitcoin Fog Founder Roman Sterlingov Sentenced to 12.5 Years

Bitcoin Fog Founder Roman Sterlingov Sentenced to 12.5 Years in Jail

Roman Sterlingov, founding father of the darknet’s oldest cryptocurrency mixer “Bitcoin Fog,” has been sentenced to 12.5 years in jail. The U.S. District Court docket Decide Randolph Moss additionally ordered Sterlingov to pay a forfeiture cash judgment of roughly $395.5 million, which incorporates seized cryptocurrency and funds.

Sterlingov Convicted of A number of Fees

Sterlingov, a Russian-Swiss nationwide, was discovered responsible of cash laundering, conspiracy to launder cash, working an unlicensed money-transmitting enterprise, and transmitting cash and not using a license. Prosecutors acknowledged that Bitcoin Fog, which Sterlingov operated for over a decade, was a go-to service for criminals trying to launder proceeds from illicit actions, together with narcotics transactions on darknet markets. All through its operation, Bitcoin Fog processed over 1.2 million Bitcoin, valued at round $400 million on the time.

Regardless of prosecutors initially looking for a 20- to 30-year sentence, Decide Moss imposed a 12.5-year sentence, emphasizing the necessity for a big deterrent within the cryptocurrency sector. Nonetheless, he deemed a life sentence extreme. Principal Deputy Assistant Lawyer Basic Nicole M. Argentieri highlighted that Sterlingov laundered over $400 million via Bitcoin Fog, demonstrating the Justice Division’s dedication to prosecuting these facilitating prison conduct.

Deterrence and Monetary Penalties

Sterlingov’s protection argued that he was merely a consumer of Bitcoin Fog and never its operator. They contended there was no direct proof linking him to the administration of the blending service, comparable to service logs or eyewitness testimonies. Regardless of this, the jury discovered Sterlingov responsible in March, resulting in his sentencing.

Decide Moss’s choice underscores the significance of deterrence in combating monetary crimes inside the cryptocurrency house. The forfeiture judgment of $395.5 million contains Sterlingov’s seized belongings and his curiosity in a Bitcoin pockets holding over $103 million. The courtroom’s ruling goals to ship a powerful message to these concerned in or contemplating related actions.

The case in opposition to Sterlingov is a part of a broader crackdown by the U.S. authorities on cryptocurrency mixers. This follows different vital actions, such because the postponement of the trial for Twister Money co-founder Roman Storm till April 2025 and the continued authorized proceedings in opposition to people related to the Samourai Pockets crypto mixer.

Sterlingov expressed regret throughout his sentencing listening to, stating, “I’m sorry for any hurt which will have come from my actions.” His lawyer, Tor Ekeland, had requested a most sentence of seven.5 years, citing the dearth of direct proof. Nonetheless, the courtroom’s verdict displays the intense implications of working unlicensed and illicit monetary companies inside the cryptocurrency business.

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