CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
  • Market Updates
  • BTC Analysis
  • ETH Analysis
  • XRP Analysis
  • Interviews
CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
    • Spanish
    • Turkish
    • German
    • Bulgarian
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • CryptoPotato Spanish
  • CryptoPotato Turkey
  • CryptoPotato Germany
  • CryptoPotato Bulgaria
Home » Crypto News » Bitcoin Fog Operator Declared Guilty of Money Laundering, Faces Up to 50 Years in Prison

Bitcoin Fog Operator Declared Guilty of Money Laundering, Faces Up to 50 Years in Prison

Author: Anthonia Isichei

Last Updated Mar 17, 2024 @ 08:36

Two of Roman Sterlingov’s charges regarding money laundering, each carry a maximum of prison sentence of 20 years.

Getting your audio player ready...

Following his arrest nearly three years ago, a Jury in a US federal district court found Roman Sterlingov, operator of the crypto mixer Bitcoin Fog, guilty of a four-count charge regarding money laundering.

The founder of Bitcoin Fog faces up to a maximum of 50 years in prison for all his charges.

Sterlingov Convicted

According to a press release on March 12, the jury declared Roman Sterlingov guilty of money laundering conspiracy and sting money laundering. The 35-year-old Russian-Swedish Bitcoin Fog founder was also found guilty of operating an unlicensed money-transmitting venture and violations of the D.C. Money Transmitters Act.

While Sterlingov’s sentencing has been scheduled for July 15, 2024, the first two charges each carry a maximum sentence of 20 years imprisonment, while the last two charges have a maximum prison sentence of five years each.

Bitcoin Fog, which operated for a decade between 2011 and 2021, served as a money laundering tool for criminals looking to obfuscate their ill-gotten money. The crypto mixer moved over 1.2 million Bitcoin throughout its operation, which was worth close to $400 million at the time and is valued at $88 billion at BTC’s current price.

As stated in the press release, most of the Bitcoin was gotten from darknet marketplaces linked to computer fraud, illegal narcotics, and identity theft. The mixer also serviced people who supplied child sexual abuse material.

Meanwhile, Bitcoin Fog’s biggest clients, according to the government, were dark web markets such as Silk Road, AlphaBay, and Agora.

Commenting on the latest development, US Attorney of the District of Columbia, Matthew Graves, said:

“Darknet criminals should know by now that operations like Bitcoin Fog cannot provide the anonymity for cryptocurrency transactions that they claim they can. This conviction demonstrates that the United States can and will combat the use of technology to carry out crimes in cyberspace.”

Apart from the guilty verdict, the jury granted forfeiture of assets previously seized by law enforcement, which include 1,354 BTC held in a Bitcoin Fog wallet, $349,625, and other crypto assets in seized accounts on the cryptocurrency exchange Kraken.

Sterlingov’s Lawyer Seeks to Reverse Guilty Verdict

Meanwhile, Tor Ekeland, the lawyer representing Sterlingov, said that they would appeal against the jury’s guilty verdict. During Sterlingov’s trial, Ekeland argued that there was no evidence pointing to the fact that his client operated Bitcoin Fog.

Sterlingov, who was arrested in April 2021, said in his testimony said that he did not remember if he created the domain name for the crypto mixer, and was doubtful that he was behind the creation.

Guilty verdict in U.S v. Sterlingov. Now we appeal.

— Tor Ekeland (@TorEkelandPLLC) March 12, 2024

US prosecutors brought in Ilya Lichtenstein and Larry Harmon to testify in the trial. Lichtenstein previously pleaded guilty to a money laundering conspiracy charge in 2022 in connection to his hack of Bitfinex in 2016 and theft of funds. Harmon, owner of Bitcoin mixer Helix, also pleaded guilty to money laundering in 2021.

Lichtenstein, testifying in the trial, said that he used mixers such as Bitcoin Fog to obfuscate the stolen funds, but he stated that Sterlingov’s crypto mixing service was not his main tool for money laundering.

Crypto mixing services continue to come under intense scrutiny from US authorities, which believe that such services serve as a useful tool for criminals. One prominent crypto mixer, Tornado Cash, was sanctioned by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury in 2022.

Tornado Cash allegedly helped to launder proceeds of cybercrimes for malicious actors such as Lazarus Group. Developers Roman Semenov and Roman Storm are facing charges ranging from money laundering to violations of sanctions, to which Storm pleaded not guilty. Semenov, however, is currently at large.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Tags: Bitcoin Money Laundering United States
Enjoy reading? Share with your friends
Facebook Twitter LinkedIn Telegram

About The Author

Anthonia Isichei
More posts by this author

Anthonia is a fintech writer who has been involved in the crypto space since 2017 covering developments across regulations, adoption, and several other aspects of the Industry. When not neck-deep in the crypto news cycle, Anthonia spends her free time globetrotting and playing video games.

Join Our Community

FacebookX YouTubeTelegram


Editorials
10 Best Meme Coins to Watch in June 2025

10 Best Meme Coins to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

7 Best Meme Coin Presales to Watch in June 2025

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Toobit Review 2025: Is Toobit a Safe Crypto Exchange?

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

Hyperliquid Bridge: How to Bridge USDC to Hyperliquid

11 Best Crypto Presales to Consider in June 2025

11 Best Crypto Presales to Consider in June 2025

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

Need for Speed – Only Ultra-Fast Blockchains Will Win the Adoption Race (Opinion)

The 5 Best Bitcoin Mining Pools in 2025: Complete Guide

The 5 Best Bitcoin Mining Pools in 2025: Complete Guide

Join Our Newsletter
Become a CryptoPotato VIP
One Weekly Email Can Change Your Crypto Life.
Sign-up FREE to receive our extended weekly market update and coin analysis report
We NEVER send spam. You can unsubscribe at any time.
Invalid email address
Thanks for subscribing!
Footer Logo
About
Advertise on CryptoPotato
About Us | Contact Us | Careers
Editorial Policy
Terms of service | Privacy Policy | GDPR
More Sections
IEO List | Evaluations
Airdrops
Scholarship
Disclaimer
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
© Copyright CryptoPotato 2016 - 2025
Scroll to top
One Daily Email Can Change Your Crypto Life.

Sign-up FREE to receive our extended daily market update and coin analysis report

We never send SPAM. You can unsubscribe at any moment
Invalid email address
Thanks for subscribing!