‘Bitcoin Fog’ Money Launderer Operator Was Sentenced to 12.5 Years in Prison
Published on November 11, 2024
- The operator of a notorious darknet cryptocurrency “mixer” was sentenced for money laundering conspiracy.
- The operation helped criminals launder proceeds from drug trafficking, computer crimes, identity theft, and child sexual abuse.
- Operation ‘Bitcoin Fog’ has laundered $400 million in cryptocurrency since 2011.
A Russian-Swedish national, Roman Sterlingov, has been sentenced to 12 years and six months in prison for his role in operating Bitcoin Fog, a notorious darknet cryptocurrency "mixer" that laundered over $400 million in illicit funds from 2011 to 2021.
The individual was sentenced to pay over $395 million as forfeiture money judgment and forfeiture of seized cryptocurrencies and monetary assets valued at approximately $1.76 million. Sterlingov was ordered to waive his interest in the Bitcoin Fog wallet as well, currently valued at more than $103 million.
The trial lasted one month, ending in March 2024, when a jury found Sterlingov guilty of several charges, mainly money laundering conspiracy and money laundering. However, money transmission without a license in the District of Columbia and operating an unlicensed money-transmitting business are also among the charges.
According to the U.S. Department of Justice, Sterlingov's operation facilitated the laundering of proceeds from various criminal activities, including drug trafficking, computer crimes, identity theft, and child sexual abuse. Bitcoin Fog was a go-to service for criminals seeking to obfuscate the origins of their ill-gotten gains.
Recently, security researchers discovered a large-scale cryptocurrency-stealing malware campaign that compromised over 28,000 users in Russia, Turkey, Ukraine, and more, which spread via trojans posing as legitimate software via YouTube promotions and malicious GitHub repositories.
Last month, the U.S. Securities and Exchange Commission (SEC) charged three companies and nine individuals with cryptocurrency fraud. The accusations include manipulating crypto markets and creating a false appearance of active trading.
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