cryptojournalist
Case Overview
Roman Sterlingov, creator of the Bitcoin Fog crypto mixer, has been sentenced to 12.5 years in prison and ordered to pay nearly $400 million. His sentencing is part of the U.S. government’s intensified crackdown on crypto mixers.
Bitcoin Fog’s Use in Criminal Activity
Bitcoin Fog, a service on the darknet, allowed users to mask cryptocurrency transactions. The DOJ claims it became a popular tool for money laundering among criminals, processing over 1.2 million Bitcoins, valued at around $400 million at the time of transaction.
Government Position
The DOJ asserted that Bitcoin Fog enabled criminals to hide illegal funds. Sterlingov was convicted of money laundering, conspiracy, and operating an unlicensed money-transmitting service. Prosecutors originally aimed for a tougher sentence, but Sterlingov received a 12.5-year term.
Privacy Concerns and Public Reaction
Throughout the trial, Sterlingov argued that he was a mere user of the platform. Some privacy advocates criticize the case as a government move against financial privacy. Crypto analyst Mario Nawfal noted the harsh sentence as a warning to other crypto mixers.
Further Cases Against Crypto Mixers
Sterlingov’s sentencing is part of a series of actions against crypto mixer operators. Roman Storm, co-founder of Tornado Cash, awaits trial in 2025 on money laundering charges. Earlier this year, Keonne Rodriguez of Samourai Wallet pleaded not guilty to similar accusations.
