US Court Sentences Roman Sterling, Founder of Darknet's Oldest Cryptocurrency Mixer Bitcoin Fog, to 12,5 years in prison. While that's a hefty sentence, it's still less than the 20- to 30-year sentence prosecutors had sought for Sterling after a jury found him guilty of money laundering and operating without a license.
According to the US Department of Justice, during its “decade of work Bitcoin Fog has gained a bad reputation as a money laundering service for criminals. The crypto mixer has become a place where criminals "hid their illegal proceeds" from law enforcement. According to police, the service has processed nearly $400 million in transactions since its inception.
In addition to the prison sentence, Sterling must pay a fine totaling $395,5 million and return assets worth $1,76 million.
Now the government is confiscating the few bitcoins he has left, while the billions of dollars he made running Bitcoin Fog, remain unaccounted for, the U.S. Justice Department said in a statement.
Throughout the trial, Roman Sterlingov maintained that he was merely a user Bitcoin Fog, not its operator.
Sterling's trial comes amid other U.S. government crackdowns on crypto mixers. In 2023, U.S. prosecutors charged Tornado Cash co-founders Roman Shtrom and Roman Semenov with conspiracy to launder money, violating sanctions, and operating without a license. Shtrom's trial has been postponed until April 2025.