Roman Sterlingov, the founder of the notorious Bitcoin Fog cryptocurrency mixer, has been sentenced to 12 years and six months in federal prison for his involvement in laundering over $400 million in criminal proceeds. Bitcoin Fog operated from 2011 to 2021, providing cybercriminals with a means to anonymize their cryptocurrency transactions. The service became one of the longest-running and most well-known money laundering platforms on the darknet, processing over 1.2 million bitcoin, primarily obtained from illicit activities, including drug trafficking, identity theft, and child exploitation.
Sterlingov, a dual Russian-Swedish national, pleaded guilty to charges of money laundering and running an unlicensed money-transmitting business earlier this year. The U.S. Department of Justice (DoJ) highlighted the significant impact of Bitcoin Fog on cybercrime, noting that the platform allowed criminals to conceal their earnings and launder proceeds from darknet marketplaces. The scale of the operation, involving over $400 million in illicit transactions, underscores the growing role of cryptocurrency mixers in facilitating illegal online activities.
As part of his sentence, Sterlingov has been ordered to forfeit a substantial sum of $395.56 million, which represents the total amount of criminal proceeds laundered through Bitcoin Fog. In addition, Sterlingov must forfeit assets valued at approximately $1.76 million, including seized cryptocurrencies and monetary holdings. The DoJ has also taken control of Sterlingov’s stake in the Bitcoin Fog wallet, which currently holds 1,345 bitcoin, worth an estimated $103 million at present market rates. This forfeiture is part of the broader effort by law enforcement to disrupt the financial infrastructure of cybercriminal enterprises.
This case highlights the growing efforts by authorities to tackle the misuse of cryptocurrency in illegal activities. Just one day before Sterlingov’s sentencing, the DoJ also announced the conviction of a Nigerian national, Babatunde Francis Ayeni, who was sentenced to 10 years for his involvement in a business email compromise scheme that resulted in the loss of nearly $20 million. The sentencing of both Sterlingov and Ayeni reflects a significant crackdown on cybercrime, with law enforcement agencies increasingly targeting individuals and organizations involved in digital money laundering and fraudulent schemes.
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