Russian-Swedish Founder of Bitcoin Fog Convicted of Money Laundering in Landmark Case
In a groundbreaking ruling for cryptocurrency regulation, Roman Sterlingov, the founder of Bitcoin Fog, has been found guilty by a Washington DC court. Bitcoin Fog, marketed as a cryptocurrency mixing service, allegedly operated as a money laundering vehicle for nearly a decade.
Details of the Bitcoin Fog Operation
According to the US Department of Justice, Bitcoin Fog processed the transfer of 1.3 million bitcoins, equivalent to approximately $400 million at the time, primarily sourced from darknet black markets. The service was notably used by platforms such as Silk Road and Agora to obfuscate the origin of funds related to illicit activities, including drug trafficking, computer fraud, and identity theft.
Consequences of the Conviction and Appeal
Russian-Swedish citizen Sterlingov faces charges of conspiracy, money laundering, and operating an unlicensed money transmission business. Arrested at a Los Angeles airport in 2021, he has been in custody since then. His lawyer, Tor Ekeland, has announced plans to appeal the verdict. The sentencing is expected to take place on July 15, with a maximum penalty of 20 years in prison.
