Key Points
- Roman Sterlingov, the operator of Bitcoin Fog, was convicted for money laundering.
- Crypto mixers have faced increased scrutiny from lawmakers and the U.S. government.
Roman Sterlingov, the operator of Bitcoin Fog, a crypto mixer, was found guilty of laundering millions of dollars.
This verdict was issued by a jury in a Washington federal court, who found Sterlingov guilty on all counts after two days of deliberation.
Sterlingov’s Charges and Trial
Sterlingov was initially charged with money laundering and operating an illegal money transmission service in 2021.
The government claimed that Bitcoin Fog had processed hundreds of millions of dollars, with $78 million originating from known darknet markets.
Sterlingov, who denied running Bitcoin Fog, could face up to 20 years in prison.
During the trial, other crypto criminals such as Ilya Lichtenstein and Larry Harmon testified.
Lichtenstein pleaded guilty to money laundering conspiracy charges relating to the 2016 hacking of crypto trading platform Bitfinex.
Harmon confessed to operating the Bitcoin mixing service Helix and pleaded guilty to money laundering in 2021.
Sterlingov’s Defence
Sterlingov, while testifying, stated that he couldn’t recall whether he created the Bitcoin Fog domain name and expressed doubt that he had done so.
His lawyer also claimed that there was no evidence to prove Sterlingov operated Bitcoin Fog.
Crypto mixers have become a point of concern for lawmakers and the U.S. government in recent years.
The Treasury Department’s Office of Foreign Assets Control has sanctioned several virtual currency mixers, including Tornado Cash and Sinbad.
Some lawmakers in Washington have expressed concerns about crypto mixers and the challenges they pose for tracing money flows.
