The operator of crypto mixer Bitcoin Fog was found guilty Tuesday of helping launder millions of dollars through darknet marketplaces known for selling illegal drugs.
According to BloombergA jury in a federal court in Washington on Tuesday found Roman Sterlingov, 35, guilty on all four counts after two days of deliberations.
Sterlingov was the first accused with money laundering and operating an illegal money transfer service in 2021. The government said hundreds of millions of dollars entered Bitcoin Fog, of which $78 million came from known markets in the darknet.
Sterlingov, who has denied running Bitcoin Fog, faces up to 20 years in prison. During the trial, the government called other crypto criminals to testify, including Ilya Lichtenstein and Larry Harmon, according to Bloomberg. Liechtenstein pleaded guilty of money laundering conspiracy charges in connection with the 2016 hack of crypto trading platform Bitfinex last year. Harmony admitted to running the bitcoin mixing service Helix and pleaded guilty to money laundering in 2021.
Sterlingov says he was not behind Bitcoin Fog
On the witness stand, Sterlingov told the court he did not remember whether he created the Bitcoin Fog domain name and doubted he did. His lawyer also said there was no evidence that Sterlingov was mining Bitcoin Fog, according to Bloomberg.
Cryptocurrency mixers have faced increased scrutiny in recent years from lawmakers and the U.S. government. The Treasury Department’s Office of Foreign Assets Control has sanctioned a few virtual currency mixers over the years, including Tornado Cash and Sinbad. In Washington, some the legislators said they were concerned about cryptocurrency mixers and the difficulty of tracing money flowing through them.
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About the Author
Sarah is a reporter at The Block covering political, regulatory and legal events. Previously, Sarah was a journalist at CQ Legal writing about securities regulation, and that’s where she began reporting on crypto. Sarah has also written for The Bond Buyer and American Banker, among other finance-related publications. She graduated from the University of Missouri with a degree in print and digital journalism. Sarah is based in Washington DC and is a coffee enthusiast. You can follow her on Twitter @ForTheWynn.