Roman Sterlingov, associated with the Bitcoin Fog crypto mixer involved in a $400 million operation, was found guilty of various offenses, including money laundering in the United States.
The conviction follows a detailed four-week trial.
Sterlingov, a 35-year-old dual citizen of Russia and Sweden, faced charges like conspiracy to launder money, conducting sting operations related to money laundering, operating an unlicensed money transmitting business, and breaking the D.C. Money Transmitters Act.
The U.S. Justice Department highlighted Bitcoin Fog as a major Bitcoin laundering service on the darknet, functioning from October 2011 to April 2021.
It primarily assisted criminals in concealing profits from illegal activities.
Over its decade-long operation, Bitcoin Fog processed over 1.2 million Bitcoin, worth around $400 million, originating mostly from darknet markets linked to various crimes including drug sales, computer fraud, identity theft, and distributing child sexual abuse materials.
The verdict also included the forfeiture of Bitcoin Fog’s assets, consisting of more than 1,354 Bitcoin in its wallet, $349,625 in cash, and additional cryptocurrencies found in Kraken accounts.
Sterlingov now faces up to 50 years in prison across all charges, with sentencing set for July 15, 2024.
Deputy Attorney General Monaco remarked on Sterlingov’s misconception about evading detection while laundering vast amounts of Bitcoin.
Jim Lee, IRS Criminal Investigation Chief, affirmed the trial’s evidence showcasing Sterlingov’s attempt to obscure the origins of massive illicit funds through Bitcoin Fog.
Sterlingov’s defense, led by attorney Tor Ekeland, announced plans to appeal the jury’s decision.
This case reinforces the U.S. government’s commitment to combatting cryptocurrency mixing services used for laundering purposes.
It follows similar actions against Roman Semenov and Roman Storm of Tornado Cash, accused of laundering approximately $1 billion.
Their trial is anticipated later in the year, marking ongoing efforts to tackle financial crimes in the digital currency space.