Roman Sterlingov, founder of the darknet’s first cryptocurrency mixer, “Bitcoin Fog,” has been sentenced to 12.5 years in prison as part of the U.S. government’s increasing crackdown on crypto mixers.
The sentence falls short of the 20- to 30-year term prosecutors originally sought after Sterlingov’s March conviction. He was found guilty by a jury on charges of money laundering, conspiracy to launder money, operating an unlicensed money-transmitting business, and transmitting money without a license.
The U.S. Department of Justice (DOJ) stated on Nov. 8 that Bitcoin Fog had gained notoriety as a “go-to money laundering service for criminals” during its decade-long operation. According to the DOJ, the service allowed criminals to “hide their illicit proceeds” from law enforcement and reportedly processed transactions involving over 1.2 million Bitcoin, worth around $400 million at the time.
In addition to his prison sentence, Sterlingov is required to pay a forfeiture money judgment totaling $395,563,025.39. He must also forfeit seized cryptocurrency and funds amounting to approximately $1.76 million. Throughout the trial, Sterlingov maintained that he was only a user of Bitcoin Fog, not its operator.
Critics of the case, like crime commentator L0la L33tz, voiced their concerns on Nov. 8, calling the sentencing a “grave miscarriage of justice” and part of the U.S. government’s “war on financial privacy.” They also noted that while Sterlingov’s remaining Bitcoin is being seized, the billions he allegedly earned remain unaccounted for.
The sentence highlights the U.S. government’s intensified scrutiny of crypto mixers. Recently, Cointelegraph reported that Roman Storm, co-founder of Tornado Cash, won’t face trial for similar charges until April 2025. Other cases include charges against Tornado co-founder Roman Semenov and, earlier this year, Keonne Rodriguez of crypto mixer Samourai Wallet, who pleaded not guilty to money laundering and was released on bail.
