Roman Sterlingov, the creator of Bitcoin Fog, was sentenced to 12.5 years in prison for laundering millions from darknet markets through his cryptocurrency blending service.
In connection with money laundering activities associated with darknet markets, a U.S. federal magistrate has sentenced Roman Sterlingov, the proprietor of Bitcoin Fog, to 12 and a half years in prison, according to Bloomberg.
Roman Sterlingov, the proprietor of Bitcoin Fog, was convicted of conspiracy to launder money and for operating an unregistered money transmitting service.
Sterlingov’s Bitcoin Fog, an anonymity service, obscured the source of digital currency transactions and, according to the government, was employed to transmit over $10 million in illicit proceeds from 2011 to 2020. This money was sourced in part from customers of darknet marketplaces where narcotics were sold.
Prosecutors charged that the company’s operations processed transactions worth hundreds of millions of dollars over a decade and concealed the contamination from the transactions.
In Washington, Judge Randolph Moss presided over the case and imposed a 150-month sentence, which was significantly lower than the government’s request for a 30-year sentence and the 50-year maximum imposed by federal sentencing guidelines. Sterlingov was also ordered to forfeit $395 million and his interest in a Bitcoin Fog wallet was valued at over $103 million in Bitcoin, in addition to serving prison time.
Throughout the trial process, Sterlingov maintained that Bitcoin Fog was not under his control, despite the fact that he employed it. Additionally, Tor Ekeland, his counsel, stated that there was no direct evidence connecting him to the platform’s administration. He was recommended to be sentenced to seven and a half years by the defense attorneys, who cited the absence of a witness testimony or operational journal to substantiate his involvement in the case.
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