Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Roman Sterlingov, the creator of Bitcoin Fog, a prominent crypto-mixing platform, has been found guilty of money laundering by a United States District Court.
In a ruling delivered on Tuesday, Roman Sterlingov, 35, was convicted on several counts, including money laundering, conspiracy to commit money laundering, operating an unlicensed money-transmitting business, and breaching the D.C. Money Transmitters Act.
During the trial, Sterlingov asserted that he was simply a user of the service rather than its administrator.
Sterlingov Managed Bitcoin Fog Until 2021
A press release from the US Department of Justice indicated that evidence presented in court demonstrated that Roman Sterlingov had managed the operation from October 2011 to April 2021, offering a money laundering service for individuals attempting to hide their illegal earnings from law enforcement.
Throughout the ten years, the service enabled the transfer of over 1.2 million Bitcoin, valued at $400 million at the time of the transactions.
The majority of these funds were linked to darknet marketplaces involved in drug trafficking, computer fraud, identity theft, and the distribution of child sexual abuse material.
“Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds,” stated Jim Lee, Chief of the Internal Revenue Service (IRS) Criminal Investigation.
In the meantime, Sterlingov’s lawyer, Tok Ekeland, announced plans to appeal the decision.
Guilty verdict in U.S v. Sterlingov. Now we appeal.
— Tor Ekeland (@TorEkelandPLLC) March 12, 2024
The jury has mandated the forfeiture of assets confiscated from Bitcoin Fog, which includes 1,354 BTC stored in a Bitcoin Fog wallet and nearly $350,000 in various cryptocurrencies held in a seized Kraken account.
Related Posts
The most severe charges, conspiracy to commit money laundering and money laundering, carry a maximum penalty of 20 years in prison, while the other two charges have a maximum penalty of five years.
Sterlingov’s sentencing is set for July 15.
Tornado Cash Co-Founder Scheduled for Trial
In a different case, Roman Storm, co-founder of the contentious cryptocurrency mixer Tornado Cash, is scheduled to go to trial in September.
Storm faces allegations of conspiracy to commit money laundering, conspiracy to run an unlicensed money-transmitting business, and conspiracy to breach the International Emergency Economic Powers Act.
Storm has pleaded not guilty to all allegations.
Indicted in August 2023, he is currently out on a $2 million bond and has highlighted the potential ramifications of the case for Web3 developers and individuals concerned about software and privacy.
While advocates of Tornado Cash contend that it solely provides software for decentralized money transmission and does not directly engage in money transmission, the crackdown on the platform has been perceived as a potential risk to developers focused on privacy-centric applications.
As reported, the US Treasury has placed Tornado Cash on its Specially Designated Nationals list, effectively prohibiting Americans from utilizing this mixer.
The Department asserted that the mixer “has been used to launder more than $7bn worth of virtual currency since its inception in 2019.”
The post Bitcoin Fog Mastermind Found Guilty in Historic Money Laundering Case appeared first on Cryptonews.
