Following his recent conviction on many offences, including money laundering, Roman Sterlingov, the creator of the cryptocurrency mixing service Bitcoin Fog, is fighting back against what his legal team calls an “unwarranted” jail term.
While not recommending a specific sentence, Sterlingov’s attorneys argued against the prosecution’s recommendation of 20 to 30 years in prison, arguing that such a lengthy term would be excessive in comparison to similar cases, in a filing made on August 15 in the United States District Court for the District of Columbia.
Background of the case
A jury ruled in March that Sterlingov operated Bitcoin Fog as a money-laundering service between 2011 and 2021. The allegations included running an unauthorized money-sending company, conspiring to launder money, and transmitting money without a license in Washington, DC.
The prosecution claims that criminals utilized Bitcoin Fog to mix up and hide the source of almost $400 million in Bitcoin associated with several illegal operations, including computer fraud, identity theft, and drug trafficking.
Sterlingov Defense Team argues.
Stelingov’s attorneys argued that the prosecution had only provided circumstantial evidence, omitting crucial information from the case. They countered that the absence of the ledger, private keys, or Bitcoin Fog server was insufficient proof.
Roman Sterlingov’s attorney also showed the jury his spotless record of no criminal activity and his unwavering devotion to his family’s welfare. They requested a lighter punishment, claiming that most of the money that went through Bitcoin Fog was not directly connected to Sterlingov.
According to Sterlingov’s defence team,
His verdict is consistent with aiding and abetting and not operating or possessing the Bitcoin Fog servers.
Roman Storm, a co-founder of Tornado Cash, is being prosecuted in the United States for his purported involvement in the cryptocurrency mining business. His trial is slated to take place in December.
Next Steps
The defence provided a 37-page memorandum on the sentence. They claim that several sentence increases penalize the same act under different charges, leading to what they dubbed a “cumulative effect.” However, Sterlingov’s defenders have emphasized that the case is highly detailed and that important components like server logs and secret keys were withheld from the jury.
U.S. District Judge Randolph Moss had originally scheduled a sentencing hearing for Sterlingov for August 21. Nevertheless, at this hearing, the court will also hear arguments against the government’s order of forfeiture. A possible $395 million judgment and assets, including 1,354 BTC kept in a dormant Bitcoin Fog wallet since 2012, are at risk.
The trial of Roman Storm, the co-founder of Tornado Cash, who is also being prosecuted in the US for his connection with a comparable cryptocurrency mixing business, has paralleled Sterlingov’s case.
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