Emily Walker
The creator of a cryptocurrency mixing service has been sentenced to 12.5 years in a U.S. prison after being found guilty of money laundering by a federal court.
This ruling highlights the seriousness with which the U.S. government approaches cryptocurrency firms that facilitate illegal activities.
Crypto Mixer Founder Sent to Prison
A sentencing by a federal court in Washington has determined that the founder of Bitcoin Fog will serve 12.5 years in prison due to his involvement in operations that facilitated money laundering.
According to reports, U.S. District Judge Randolph Moss found Roman Sterlingov guilty of laundering an estimated $400 million, marking his platform as one of the most extensive and longstanding money laundering services available.
Prosecutors indicated that the platform was exploited by criminals to clean funds obtained from illegal activities, including drug trafficking.
Additionally, Judge Moss mandated that the 36-year-old must forfeit $395 million in assets, including over $103 million worth of Bitcoin held in a Bitcoin Fog wallet.
Sterlingov expressed remorse for his actions, stating his commitment to becoming a better individual.
A More Lenient Sentence
The 12-year sentence appears relatively light when compared to the 30-year term sought by the U.S. government and the potential maximum of 50 years according to federal guidelines.
State prosecutor Christopher Brown emphasized the need for harsher punishment, arguing that the scale and duration of Sterlingov’s operations justified a stiffer sentence.
“This is criminal activity of a staggering scale over a prolonged period of time,” Brown stated.
Prosecutors noted that Bitcoin Fog provided a seamless way for criminals to utilize funds acquired through illegal means, particularly in drug-related cases.
They further asserted that the crypto service allowed transactions that obscured the origins of the funds, which was beneficial for those involved in criminal enterprises.
Principal Deputy Assistant Attorney General Nicole M. Argentieri remarked that Sterlingov’s platform enabled the laundering of over $400 million in illicit funds, allowing criminals to camouflage their dirty money.
A Deterrent for Future Offenders
The federal judge explained that a life sentence would be disproportionate to the circumstances, but the penalty still needed to serve as a warning to others in the crypto space.
Argentieri reiterated that Sterlingov’s sentence underscores the U.S. Department of Justice’s dedication to holding accountable those who assist criminals in engaging in unlawful activities.
Featured image from Serious Eats, chart from TradingView