Roman Sterlingov, the founder of a cryptocurrency mixer, seeks to overturn his 30-year sentence for money laundering.

Roman Sterlingov, the creator of the cryptocurrency mixer Bitcoin Fog, is contesting a possible 30-year prison term after being found guilty on several money laundering charges.

In a submission made on August 15 to the United States District Court for the District of Columbia, Sterlingov’s attorneys claimed that such a lengthy sentence is disproportionate and inconsistent with similar cases.

His legal representatives did not propose a specific sentence but stressed that the government’s suggestion of a 20 to 30-year term is unwarranted.

They argue that the recommended sentence does not correspond with the outcomes of analogous cases, where lesser penalties were applied.

Sterlingov Found Guilty of Money Laundering

Sterlingov was found guilty in March on charges of money laundering, conspiracy, operating an unlicensed money transmitting business, and transmitting money without a license in Washington, D.C.

Prosecutors claim that he managed Bitcoin Fog from 2011 to 2021, facilitating the laundering of around $400 million in Bitcoin associated with various illegal activities, including drug trafficking, identity theft, and computer fraud.

However, Sterlingov’s defense team contests his degree of involvement, asserting that while he was linked to Bitcoin Fog, he was not accountable for its operations.

They maintain that much of the evidence presented during the trial was circumstantial, pointing out that crucial pieces of evidence, such as the Bitcoin Fog server, server logs, private keys, or ledger, were never submitted in court.

The defense also underscored Sterlingov’s personal background, highlighting his dedication to family and friends as justification for a lesser sentence.

They contend that the verdict indicates his role was more about aiding and abetting rather than directly managing Bitcoin Fog.

Judge Randolph Moss had originally set Sterlingov’s sentencing for August 21 but later opted to first consider arguments regarding the government’s forfeiture order.

This includes assets such as 1,354 BTC in a Bitcoin Fog wallet that has remained inactive since 2012, along with a potential $395 million judgment.

Tornado Cash Exceeds $1.8 Billion in Deposits in H1

The well-known crypto mixing protocol Tornado Cash has seen a revival in 2024, with deposits exceeding $1.8 billion in the first half of the year.

This amount represents a 45% increase compared to the total deposits in the crypto mixer throughout 2023.

Recently, Tornado Cash has witnessed a significant influx of funds from hackers involved in major thefts.

Notably, the individual behind the Poloniex exchange breach, who stole over $100 million last year, transferred $76 million to Tornado Cash in the last two months, according to Arkham Intelligence.

Furthermore, hackers responsible for exploiting the HECO Bridge and Orbit Chain have sent $166 million and $47.7 million, respectively, to the mixer this year.

In August 2022, Tornado Cash was sanctioned by the US Treasury due to its role in laundering more than $455 million worth of cryptocurrency stolen by the North Korea-linked hacking group, Lazarus.

Following these sanctions, monthly deposits to Tornado Cash dropped by over 90%.

However, the decentralized nature of the protocol presents challenges for US authorities in effectively overseeing its usage.

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