tl;dr
Roman Sterlingov, the founder of Bitcoin Fog, has been sentenced to 12.5 years in prison for money laundering linked to darknet markets. He must forfeit $395 million and funds in a Bitcoin Fog wallet valued at over $103 million. The case has sparked debate within the crypto community regarding priva...
Roman Sterlingov, the founder of Bitcoin Fog, has been sentenced to 12.5 years in prison for money laundering linked to darknet markets. He must forfeit $395 million and funds in a Bitcoin Fog wallet valued at over $103 million.
The case has sparked debate within the crypto community regarding privacy and government oversight. Prosecutors initially sought a 30-year sentence, alleging perjury, but Sterlingov maintained he was only a user, not the operator. The defense argued lack of direct evidence, while prosecutors claimed Bitcoin Fog facilitated untraceable transactions connected to illicit activities.
The US government's scrutiny of privacy-oriented protocols, including Tornado Cash, has raised concerns among privacy advocates and industry insiders.
PRIVACY ADVOCATES REACT TO BITCOIN FOG FOUNDER’S SENTENCE AND FORFEITURE Sponsored Sponsored The prosecutors initially sought a 30-year sentence, arguing that Sterlingov perjured himself by denying involvement with Bitcoin Fog. However, Sterlingov maintained in court that he was merely a user and not the operator. His attorney, Tor Ekeland, pointed out a lack of direct evidence.
The lawyer argued that the authority lacked eyewitness accounts or platform logs to support their position of his control over the mixing service. Despite the defense’s arguments, prosecutors alleged that Bitcoin Fog had facilitated hundreds of millions in untraceable transactions.
Many of these transactions were reportedly connected to illicit activities on darknet marketplaces. Records from the case suggest that from 2011 to 2021, Bitcoin Fog became a preferred service for individuals looking to obfuscate transactions linked to illegal operations, handling over 1.2 million Bitcoin — an amount valued at roughly $400 million at the time.
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, also stated that Sterlingov’s actions allowed criminals to launder funds from a wide array of offenses, including drug trafficking, identity theft, and child exploitation. She emphasized that the Justice Department remains committed to holding those who enable criminal activity fully accountable.
The US government’s ongoing scrutiny of privacy-oriented protocols, including Tornado Cash, has raised questions among privacy advocates and industry insiders. Crypto commentator L0la L33tz voiced strong disapproval of the recent verdict. They assert that Sterlingov’s case is an unjust move in the government’s “war on financial privacy.”