According to Blockworks, Roman Sterlingov, the founder of Bitcoin Fog, a crypto mixer, was convicted in a Washington DC court on Tuesday. The Department of Justice (DOJ) stated that Sterlingov operated the crypto mixer for about 10 years as a money laundering service. The agency alleged that Bitcoin Fog moved 1.3 million bitcoin, valued at around $400 million at the time, during its operation. The service was allegedly used by darknet marketplaces such as Silk Road and Agora.
Sterlingov was found guilty of conspiracy, sting money laundering, and operating an unlicensed money-transmitting business. His sentencing hearing is scheduled for July 15, according to a DOJ press release. The majority of the cryptocurrency involved came from darknet marketplaces and was linked to illegal narcotics, computer fraud and abuse activities, and identity theft.
Sterlingov's attorney, Tor Ekeland, stated that they will appeal the verdict. IRS Criminal Investigation Chief Jim Lee said that evidence presented at trial showed that Sterlingov laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog to conceal the origin of those funds.
Sterlingov, a Russian-Swedish dual citizen, was arrested in 2021 at a Los Angeles airport and has been detained since then. The DOJ claimed in the press release that Sterlingov made millions in commissions from Bitcoin Fog transactions. This verdict is the latest in a series of wins for the US government in crypto-related cases.
