The founder of Bitcoin Fog, a notorious cryptocurrency mixing service, was convicted by a federal jury on Tuesday for his role in obscuring hundreds of millions in digital currency tied to dark web drug sales and other illicit activities.

Breaking: Crypto Crime Update: Guilty Verdict in the Bitcoin Fog Case Involving Roman Sterlingov

In a landmark case, Roman Sterlingov, a 33-year-old Swedish-Russian national, was convicted by the Department of Justice (DOJ) of laundering $336 million through Bitcoin Fog, a… pic.twitter.com/O6vSjKcohC

— Carlo.eth (@DeFiDefenseLaw) March 12, 2024

Bitcoin Fog Founder Convicted for Dark Web Money Laundering

After nearly two days of deliberation, the 12-person jury found Roman Sterlingov, a dual Russian and Swiss citizen, guilty of four counts of money laundering. 

Prosecutors successfully argued that Bitcoin Fog, launched in 2011, helped criminal enterprises mask over $400 million in cryptocurrency transactions, including $78 million directly linked to dark web contraband marketplaces like Silk Road.  

Sterlingov’s conviction represents a pivotal win as law enforcement sharpens its focus on cryptocurrency’s nexus with money laundering. Authorities are dismantling mixing services like Bitcoin Fog to cut off critical illicit finance pipelines.

The month-long trial showed the money trail between seedy online contraband bazaars and services designed to anonymize digital currency flows. Prosecutors walked the jury through a complex web of transactions from dark web drug sales that were obfuscated via Bitcoin Fog before entering regulated cryptocurrency exchanges.   

Sterlingov, who has already spent nearly 3 years behind bars, now faces up to 20 years in prison. Sentencing is scheduled for July. Throughout the proceedings, he vehemently denied operating Bitcoin Fog for profit, though prosecutors presented evidence he tested the mixer using personal cryptocurrency accounts before its public launch.

The conviction comes amid heightened global scrutiny over cryptocurrency’s role in enabling sanctions evasion and laundering illicit funds. 

A recent report by Chainalysis revealed $14.9 billion in sanctioned entity transactions last year, with mixing services like Bitcoin Fog accounting for a significant share of this dark flow. Major exchanges like Binance have faced compliance crackdowns.

Disclaimer

This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.