Roman Sterlingov was sentenced to 12.5 years for operating Bitcoin Fog, a darknet BTC mixing service that laundered over $400 million in criminal proceeds.
DOJ Shuts Down Bitcoin Fog
Roman Sterlingov has been sentenced to prison for operating Bitcoin Fog, a BTC blending service, according to the U.S. Department of Justice (DOJ) on Friday. The Department of Justice declared:
A dual Russian-Swedish national was sentenced today to 12 years and six months in prison for his operation of the longest-running bitcoin money laundering service on the darknet.
From 2011 to 2021, Bitcoin Fog was a favored destination for criminals seeking to conceal illicit proceeds, as evidenced by the evidence presented at trial. The platform processed more than 1.2 million bitcoin transactions, which were valued at over $400 million at the time.
The darknet marketplaces were the source of the majority of this activity, which facilitated crimes such as identity fraud, narcotics trafficking, and child exploitation.
Deputy Attorney General Lisa Monaco addressed the sentencing, stating, “Roman Sterlingov operated the longest-running bitcoin money laundering service on the darknet, and today he was sentenced accordingly.”
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, underscored the scope of Sterlingov’s operation, stating that “Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency’mixing’ service that was open for business to criminals looking to hide dirty money.”
The gravity of this conviction is underscored by the substantial prison term and hundreds of millions in financial sanctions imposed on the defendant today, as emphasized by Chief Guy Ficco of IRS Criminal Investigation.
Sterlingov is required to pay a substantial pecuniary penalty as part of the sentence. The Department of Justice provided an explanation:
n addition to his term of imprisonment, Sterlingov was sentenced to pay a forfeiture money judgment in the amount of $395,563,025.39, and forfeiture of seized cryptocurrencies and monetary assets valued at approximately $1.76 million
“In addition, Sterlingov was ordered to forfeit his interest in the Bitcoin Fog wallet, totaling approximately 1,345 bitcoin and currently valued at more than $103 million,” the Justice Department noted.
