Bitcoin Fog operator sentenced to 12.5 years for laundering $400M in crypto. The darkish internet’s longest-running mixer processed 1.2M bitcoin tied to unlawful actions over 10 years.
Roman Sterlingov, a 36-year-old twin Russian-Swedish nationwide, has been sentenced to 12 years and 6 months in jail for working Bitcoin Fog, the longest-running cryptocurrency “mixer” on the darkish internet.
The Bitcoin Fog Operation
Between 2011 and 2021, Sterlingov’s Bitcoin Fog processed over 1.2 million Bitcoin transactions, valued at roughly $400 million on the time of the transactions. Nearly all of these transactions originated from darkish internet marketplaces and have been linked to illicit actions equivalent to narcotics trafficking, pc crimes, id theft, and baby sexual abuse materials.
The Investigation and Prosecution
Sterlingov’s operation was delivered to an finish in March 2024, when a jury discovered him responsible of cash laundering conspiracy, cash laundering, working an unlicensed cash transmitting enterprise, and cash transmission with no license within the District of Columbia.
The investigation, led by the IRS-CI District of Columbia Cyber Crime Unit and the FBI Washington Discipline Workplace, concerned collaboration with worldwide authorities, together with these from Japan, Sweden, Denmark, Romania, and the UK, in addition to Europol.
Along with his jail sentence, Sterlingov has been ordered to pay a forfeiture cash judgment of $395,563,025.39 ($395.56 million) and to forfeit seized cryptocurrencies and financial property valued at roughly $1.76 million. He may even forfeit his curiosity within the Bitcoin Fog pockets, which incorporates roughly 1,345 Bitcoins, at present valued at over $103 million.
“Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children,” mentioned Principal Deputy Assistant Lawyer Common Nicole M. Argentieri.
Whereas cybercriminals and cash launderers have turn out to be more and more refined at utilizing superior anonymization strategies to hide their operations, this case additionally highlights legislation enforcement’s enhanced functionality to trace and prosecute cryptocurrency-based cash laundering.
