YEREVAN (CoinChapter.com) — Roman Sterlingov, founder of the cryptocurrency mixer Bitcoin Fog, has been sentenced to 12.5 years in prison. Along with the prison term, Sterlingov must forfeit approximately $395.5 million in connection to charges including money laundering, conspiracy, and operating an unlicensed money-transmitting business. In addition, the U.S. government is actively pursuing action against cryptocurrency mixers, marking this case as a notable example of the Department of Justice (DOJ)’s ongoing crypto crackdown.
Following his March conviction, Sterlingov faced the possibility of a 20 to 30-year sentence, a term initially sought by prosecutors. The court’s decision, however, resulted in a 12.5-year sentence, with Sterlingov required to forfeit around $1.76 million in cryptocurrency and funds already seized.
DOJ Labels Bitcoin Fog a “Go-To” for Criminal Money Laundering
On Nov. 8, the DOJ released a statement outlining its case against Bitcoin Fog. The DOJ claimed that Bitcoin Fog served as a major money-laundering tool on the darknet. According to the DOJ, the platform processed over 1.2 million Bitcoin, worth about $400 million at the time.
The investigation showed that Bitcoin Fog became popular among criminals looking to hide funds from law enforcement. The DOJ stated that this platform played a key role in criminal financial networks. Bitcoin Fog, they said, stood out as one of the darknet’s primary cryptocurrency mixers.
During the trial, Sterlingov insisted he was only a user of Bitcoin Fog, not its operator. However, the court rejected this claim and found him guilty on all charges, resulting in his sentence and financial penalties.
Crypto Privacy Advocates Raise Concerns Over Sterlingov’s Sentence
After the verdict, people in the crypto community reacted with concerns about privacy and financial freedom. Commentator “L0la L33tz” called the case a “grave miscarriage of justice,” seeing it as part of a larger government effort against financial privacy. L33tz also pointed out that the Bitcoin seized from Sterlingov is much less than the billions he was accused of laundering.
Another crypto figure, Mario Nawfal, echoed concerns, stating that the sentence sends a message to mixers involved in activities that challenge government regulations. Nawfal remarked,
“This ain’t just a slap on the wrist — it’s a straight-up message to mixers.”
DOJ’s Wider Focus on Cryptocurrency Mixing Services
Sterlingov’s sentencing is part of a larger crackdown on crypto mixers, a sector facing increased regulatory pressure. The Department of Justice has also taken action against Roman Storm, co-founder of Tornado Cash, who is charged with money laundering and sanctions violations and is scheduled for trial in April 2025. Storm’s co-founder, Roman Semenov, also faces similar accusations, including conspiracy to operate an unlicensed money-transmitting business.
In 2023, the DOJ charged Keonne Rodriguez, linked to the privacy-focused cryptocurrency service Samourai Wallet, with money laundering. Rodriguez pleaded not guilty and secured release on bail while awaiting further legal proceedings. Above all, these cases illustrate the DOJ’s increased scrutiny on crypto mixing services, focusing on preventing illegal financial activities across digital asset platforms.
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