Bitcoin Fog Founder Found Guilty in $400 Million High Profile Crypto Laundering Case
The post Bitcoin Fog Founder Found Guilty in $400 Million High Profile Crypto Laundering Case appeared first on Coinpedia Fintech News
A high-profile case ended with Roman Sterlingov, the owner of Bitcoin Fog, a well-known crypto-mixing service, being convicted in United States District Court on Tuesday, March 12th, for money laundering.
Roman Sterlingov was convicted of several charges such as money laundering, conspiracy laundering, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act. Though his lawyers argued that he was only a Bitcoin Fog service user and would appeal, the jury’s judgment concluded him guilty of his involvement in operating the Bitcoin Fog service.
Bitcoin Fog’s illicit operations
The trial revealed that from October 2011 to April 2021, for nearly a decade, Bitcoin Fog, a money laundering service that allowed criminals to hide their illegal assets from law enforcement, was in operation. The service captured close to 1.2 million Bitcoin transactions valued at $400 million at the time of the transactions.
An overwhelming majority of the cryptocurrency was tied directly to the darknet marketplaces associated with narcotics, computer fraud, identity theft and distribution of child sexual abuse materials.
Forfeiture of assets and Sterlingov’s legal sentencing
The jury verdict lists Bitcoin Fog assets for forfeiture, including 1,354 BTC held in a Bitcoin Fog wallet and approximately $350,000 worth of cryptocurrency in a Kraken account, which was seized.
The sanctions against Sterlingov carry substantial penalties, with money laundering conspiracy and money laundering each having a maximum sentence of 20 years imprisonment, while the other charges have a maximum sentence of 5 years. The sentencing of Sterlingov will take place on July 15.
Conclusion
Roman Sterlingov’s sentence sets an example for the upcoming lawsuits against crypto mixer platforms and their owners. In September, the case of Roman Storm, co-founder of Tornado Cash, the controversial crypto mixer that the United Nations sanctioned back in August 2022, will also be heard in a courtroom.
Roman Sterlingov’s being found guilty of the Bitcoin Fog case is viewed as an important triumph for law enforcement agencies in their unrelenting fight against illegal activities in the crypto space. The U.S. Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.
Read More
Bitcoin Fog Founder Found Guilty in $400 Million High Profile Crypto Laundering Case
The post Bitcoin Fog Founder Found Guilty in $400 Million High Profile Crypto Laundering Case appeared first on Coinpedia Fintech News
A high-profile case ended with Roman Sterlingov, the owner of Bitcoin Fog, a well-known crypto-mixing service, being convicted in United States District Court on Tuesday, March 12th, for money laundering.
Roman Sterlingov was convicted of several charges such as money laundering, conspiracy laundering, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act. Though his lawyers argued that he was only a Bitcoin Fog service user and would appeal, the jury’s judgment concluded him guilty of his involvement in operating the Bitcoin Fog service.
Bitcoin Fog’s illicit operations
The trial revealed that from October 2011 to April 2021, for nearly a decade, Bitcoin Fog, a money laundering service that allowed criminals to hide their illegal assets from law enforcement, was in operation. The service captured close to 1.2 million Bitcoin transactions valued at $400 million at the time of the transactions.
An overwhelming majority of the cryptocurrency was tied directly to the darknet marketplaces associated with narcotics, computer fraud, identity theft and distribution of child sexual abuse materials.
Forfeiture of assets and Sterlingov’s legal sentencing
The jury verdict lists Bitcoin Fog assets for forfeiture, including 1,354 BTC held in a Bitcoin Fog wallet and approximately $350,000 worth of cryptocurrency in a Kraken account, which was seized.
The sanctions against Sterlingov carry substantial penalties, with money laundering conspiracy and money laundering each having a maximum sentence of 20 years imprisonment, while the other charges have a maximum sentence of 5 years. The sentencing of Sterlingov will take place on July 15.
Conclusion
Roman Sterlingov’s sentence sets an example for the upcoming lawsuits against crypto mixer platforms and their owners. In September, the case of Roman Storm, co-founder of Tornado Cash, the controversial crypto mixer that the United Nations sanctioned back in August 2022, will also be heard in a courtroom.
Roman Sterlingov’s being found guilty of the Bitcoin Fog case is viewed as an important triumph for law enforcement agencies in their unrelenting fight against illegal activities in the crypto space. The U.S. Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.
Read More