Bitcoin Fog Operator Faces 12 Years for $400M Darknet Laundering Scheme

Roman Sterlingov, a dual Russian-Swedish national, was sentenced to 12 years and six months in prison on Monday for operating Bitcoin Fog, the darknet’s longest-running bitcoin money laundering service.

According to court documents, Sterlingov, 36, ran Bitcoin Fog from 2011 to 2021, using the cryptocurrency “mixer” to obscure the origins of more than 1.2 million bitcoin transactions valued at roughly $400 million. The bulk of this cryptocurrency flowed from darknet marketplaces and was tied to illicit activities, including drug trafficking, identity theft, and child sexual abuse material.

Multiple Charges vs Bitcoin Fog Operator

Sterlingov was found guilty in March 2024 on multiple charges, including money laundering conspiracy, operating an unlicensed money transmitting business, and money transmission without a license. In addition to prison time, he was ordered to pay a forfeiture judgment of $395,563,025.39 and surrender seized assets, including 1,345 bitcoin worth over $103 million.

“Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price,” stated Deputy Attorney General Lisa Monaco. “He provided a refuge for criminals to store hundreds of millions in illicit proceeds. Today’s sentence underscores the Department’s commitment to dismantling the criminal networks enabling these actors.”

IRS-Criminal Investigation Chief Guy Ficco highlighted the success of the investigation, saying: “Today’s significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction and should serve as a stark notice that this type of criminal activity will not be tolerated.”

FBI Warning to Cybercriminals

Assistant Director in Charge David Sundberg of the FBI emphasized that the prosecution and sentencing of Roman Sterlingov send a clear warning to cybercriminals. He noted that the FBI is prepared to use all available resources and partnerships to disrupt the cybercriminal ecosystem, targeting individuals who provide essential services that enable illegal activities.

The case was investigated by IRS-CI’s Cyber Crime Unit and the FBI’s Washington Field Office, with international assistance from law enforcement agencies across Japan, Sweden, Denmark, Romania, the UK, and Europol.

Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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