Criminal Crypto Launderer Gets 12.5 Years in Prison
Arthur T Knackerbracket has processed the following story:
The operator of the longest-running money laundering machine in dark web history, Bitcoin Fog, has been sentenced to 12 years and six months in US prison.
Roman Sterlingov, 36, a Russian-Swedish national, was also ordered to repay more than half a billion dollars accrued from the cryptocurrency mixing service that he ran for a decade between 2011 and 2021.
Bitcoin Fog was assessed to have processed 1.2 million Bitcoin during that time, worth roughly $400 million at the time it was shuttered. Of this, Sterlingov was ordered to repay $395,563,025.39 in restitution, forfeit roughly $1.76 million in seized assets, and relinquish control of Bitcoin Fog's wallet containing more than $100 million in Bitcoin.
He was found guilty back in March, at which point he faced a maximum 50-year sentence. Prosecutors said the vast majority of Sterlingov's wealth came from the proceeds of crime in which he and his online service helped criminals hide from law enforcement.
The court heard that the crimes associated with this activity included the sale of drugs, computer misuse offenses, identity theft, and child sexual abuse material (CSAM).
"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," said Principal Deputy Assistant Attorney General Nicole M Argentieri, head of the Justice Department's Criminal Division.
[...] There are many cryptocurrency mixers available to criminals, so the downfall of Bitcoin Fog won't put a significant dent in their use. However, investigators will be pleased that a service as relied upon as Sterlingov's could be scuppered and distrust sown throughout the community of criminals who use them.
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