12 years in prison for man who operated Bitcoin money laundering wallet

Following a month-long trial in March, the dual Russian-Swedish citizen was found guilty of money laundering conspiracy, money laundering, operating an unlicensed money transmission business and unlicensed money transmission in the District of Columbia.

The Department of Justice alleged that the 36-year-old operated Bitcoin Fog between 2011 and 2021 and allegedly laundered $400 million in illicit proceeds for all manner of international criminals.

“Roman Sterlingov operated the longest-running bitcoin money laundering service on the dark web, and today he paid the price,” Deputy Attorney General Lisa Monaco said in the Justice Department statement.

“In the deepest corners of the internet, it has provided a home for criminals of all stripes, from drug dealers to identity thieves, to stash hundreds of millions of dollars in illicit proceeds.”

While Sterlingov was at the helm, Bitcoin Fog served as a digital “mixer” that processed transactions involving more than 1.2 million bitcoins valued at approximately $400 million.

“Through his illegal money laundering operation, Sterlingov helped criminals launder the proceeds of drug trafficking, computer crimes, identity theft, and child sexual exploitation. Today’s sentencing underscores the Department of Justice’s determination to hold facilitators of criminal activity fully accountable for their crimes; ” said Deputy Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division.

In addition to the prison sentence and financial penalty, U.S. District Judge Randolph Moss of Washington ordered Sterlingov to forfeit all stakes in his Bitcoin Fog wallet, which currently holds 1,345 Bitcoins worth more than $103 million.

Prosecutors wanted Moss to be sentenced to 30 years in prison, while defense lawyers requested no more than seven years in prison.

Sterlingov faced a maximum sentence of 50 years in prison upon conviction.

“Clearly, Sterlingov’s attempt to conceal his illegal activities under a cloak of anonymity ultimately failed in the face of the complex collaborative work of our Criminal Investigation special agents and partners,” IRS Criminal Investigation Chief Guy Ficco said in the Department of Justice statement. he said.

“Today’s significant prison sentence and hundreds of millions of dollars in financial sanctions imposed on the defendant underscore the seriousness of this conviction and should serve as a clear warning that such criminal activity will not be tolerated.”