Bitcoin Fog Operator Sentenced by DOJ to Over 12 Years for Money Laundering

Roman Sterlingov, a Russian-Swedish national, was given a significant sentence of 12 years and six months in prison by the U.S. Department of Justice (DOJ) on Friday. Sterlingov was found guilty of running Bitcoin Fog, a well-known darknet bitcoin mixing service that allowed criminals to conduct anonymous transactions between 2011 and 2021.

The DOJ claims that Bitcoin Fog, which handled more than 1.2 million bitcoin transactions, or more than $400 million at the time, was a preferred venue for illicit transactions. In order to conceal their profits, the firm mainly assisted criminals involved in the distribution of drugs, identity theft, and child exploitation.

High-Stakes Crime and Law Enforcement Response

Deputy Attorney General Lisa Monaco highlighted the significance of the case, stating, “Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price.” The DOJ underscored the gravity of Bitcoin Fog’s role in supporting illicit activities, especially as it became a staple for criminals seeking to hide their digital footprints.

Principal Deputy Assistant Attorney General Nicole M. Argentieri emphasized the scale of Sterlingov’s activities: “Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open for business to criminals looking to hide dirty money.” Chief Guy Ficco of IRS Criminal Investigation added, “Today’s significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction.”

Sterlingov risks severe financial penalties in addition to his jail term. $395,563,025.39. was the forfeiture money judgment that the DOJ required him to pay. In addition, he had to give over almost $1.76 million in assets and cryptocurrency that had been seized. The DOJ also ordered Sterlingov to give over his stake in the Bitcoin Fog wallet, which contained about 1,345 bitcoin and is currently worth more than $103 million.

This punishment is a warning that in the battle against illegal financing in the digital era, even highly complex money-laundering methods are subject to close examination and harsh penalties.