As a seasoned analyst with over two decades of experience in the financial sector, I have witnessed the evolution of digital currencies and their associated services from a distant observer. The recent sentencing of Roman Sterlingov, the founder of Bitcoin Fog, serves as a stark reminder of the fine line that separates innovation and illegality in the rapidly evolving world of cryptocurrencies.
Roman Sterlingov, the originator of the oldest cryptocurrency tumbler on the darknet known as “Bitcoin Fog,” was handed a 12.5-year prison term by U.S. authorities, marking a significant component of their comprehensive campaign against crypto mixers.
The requested sentence of 20 to 30 years that prosecutors initially sought after Sterlingov’s March conviction for money laundering, conspiracy to launder money, running an unauthorized money-transmission business, and transmitting money without a license was not granted by the court. Instead, the court handed down a sentence of less duration than what was proposed earlier.
Bitcoin Fog was a ‘go-to’ service for criminals, says DOJ
In a statement issued on November 8th, the U.S. Department of Justice (DOJ) stated that over a ten-year period, Bitcoin Fog became well-known among criminals as a primary choice for money laundering activities.
Additionally, the DOJ asserted that Bitcoin Fog served as a concealment spot for criminal activities, allowing them to evade detection by law enforcement. It’s said that Bitcoin Fog handled transactions involving over 1.2 million Bitcoins, which were worth approximately $400 million at the time of these transactions.
Sterlingov needs to cover a total of $395,563,025.39 in a “penalty payment” due to a court judgment, along with surrendering around $1.76 million in seized cryptocurrency and funds.
During the court proceedings, Sterlingov consistently maintained his position as merely a user, not the overseer, of the service.
In a November 8 post, crime analyst L0la L33tz expressed her viewpoint that “the entire case represents a severe misjustice, serving as yet another milestone in the U.S. government’s battle against financial confidentiality.
US government continues to crackdown on crypto mixers
Authorities are currently confiscating what’s left of his Bitcoins, but the billions of dollars in profits he is said to have earned through Bitcoin Fog still haven’t been traced or explained.
if you engage in shady activities, expect significant penalties.
It comes amid the recent US government cracking down on crypto mixer founders.
According to a report by CryptoMoon on November 1st, it was announced that Roman Storm, co-founder and developer of Tornado Cash, will not face trial for accusations related to money laundering and violating sanctions until the month of April 2025.
In the year 2023, Roman Semenov, a key figure in the duo that established Storm and Tornado, was indicted for conspiring to launder money, violate sanctions, and run an unauthorized money transfer service.
In the month of April, finding myself as a researcher delving into the realm of digital currencies, I came across the case involving Keonne Rodriguez, one of two individuals tied to Samourai Wallet, a cryptocurrency mixer, who were accused by the Department of Justice of money laundering. Notably, Mr. Rodriguez pleaded not guilty to these charges and was granted bail, continuing his fight against them in the legal system.
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2024-11-09 09:31