Roman Sterlingov, the founder of Bitcoin Fog, is challenging a proposed 30-year prison sentence. He was convicted on money laundering charges in March 2024. A jury found him guilty of operating Bitcoin Fog, a crypto mixing service. Prosecutors claim the service facilitated laundering nearly $400 million in Bitcoin from 2011 to 2021. His legal team argues that the governmentâs proposed sentence is excessive.
On August 15, Roman Sterlingovâs lawyers submitted a memo to the U.S. District Court for the District of Columbia. They disputed the prosecutorsâ recommendation for a 20 to 30-year sentence. The defense emphasized that much of the evidence was circumstantial. They argued there was no direct proof of Sterlingovâs control over Bitcoin Fog. The memo stated that his verdict aligns more with aiding and abetting, not actually operating Bitcoin Fog.
Sterlingov Sentencing Memo. Source: United States District Court, District of Columbia Sterlingovâs Defense Challenges Conviction, Cites Lack of Evidence
Prosecutors claim criminals used Bitcoin Fog to hide the origins of their funds. The U.S. government alleges the service processed transactions linked to drug trafficking, identity theft, and computer fraud. They accuse Sterlingov of managing these operations, which led to his conviction.
FBI on Sterlingovâs Conviction. Source: FBI Washington Field Office
Sterlingovâs defense argues he was connected to Bitcoin Fog but did not control its daily activities. They emphasize that key evidence, such as server logs and private keys, was not presented at trial. As a result, this absence raises doubts about the justification for a lengthy sentence.
Additionally, the defense highlights Sterlingovâs strong commitment to his family and friends. They suggest this commitment warrants a much lighter sentence.
Crypto Mixer Cases Highlight Rising Legal Pressure on Industry
Sterlingovâs sentencing, set for August 21, has been postponed. The court will first address the governmentâs request to seize assets linked to Bitcoin Fog. This includes 1,354 BTC held in a wallet since 2012. The potential forfeiture could reach $395 million.
As the case moves forward, Sterlingovâs legal team continues to argue against the proposed sentenceâs severity. Meanwhile, other similar cases are developing. Tornado Cash co-founder Roman Storm faces trial in December. Another Tornado Cash developer, Alexey Pertsev, is appealing a five-year sentence for money laundering.
Support for Alexey Pertsev. Source: Free Pertsev & Storm
As these cases continue to unfold, they underscore the growing attention on crypto mixers and their role in illegal activities. Consequently, the outcomes may significantly influence how authorities approach similar platforms in the future.
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