Roman Sterlingov, operator of Bitcoin Fog, sentenced to 12.5 years in prison for laundering $400M in illicit crypto transactions.
Roman Sterlingov, a dual Russian-Swedish national, was sentenced to 12 years and six months in prison for his role in operating the longest-running Bitcoin money laundering service on the darknet, known as Bitcoin Fog. The sentencing comes after a trial in March 2024. In this trial, Sterlingov was found guilty on several charges. These include money laundering conspiracy, conducting an unlicensed money transmission business. Moreover, they transmitted money without a license in the District of Columbia. The case is a triumph for authorities seeking to apprehend criminals using the darknet.
Bitcoin Fog was active from 2011 until the end of 2021 and was frequently used by criminals for money laundering. During its existence, the service worked with more than 1.2 million bitcoins, worth about $400 million at the time. Transactions included those linked to drug trafficking, identity theft, computer crimes, and the distribution of CP or child sexual exploitation material.
Bitcoin Fog Sentencing Sends Strong Message Against Darknet Crime
In addition to imprisonment, Sterlingov was also to pay a criminal forfeiture of $395.5 million, which consists of $1.76 million in cash, other assets, and cryptocurrencies. He cannot retain his ownership in the Bitcoin Fog wallet, which has 1,345 registered Bitcoins, equivalent to $103 million.
Deputy Attorney General Lisa Monaco stated that Roman Sterlingov operated the longest Bitcoin money laundering service on the darknet and has reaped what he sowed. She stressed that the sentence indicates the DOJ’s intention to dismantle criminal enclaves on the dark web.
IRS Criminal Investigation Chief Guy Ficco also pointed out that this was a typical case to show that the criminal use of cryptocurrency would not go unnoticed. He said that Sterlingov’s “cloak of anonymity” did not work against the police’s cooperation.
On the other hand, the investigation and prosecution were conducted in cooperation with the FBI, the IRS-CI, and international law enforcement bodies, including Japanese, Romanian, British, Swedish, Danish, and Europol police. Moreover, Police forces have been employing better equipment and collaborating with international organizations to fight cybercrimes and punish offenders.
