A Russian-Swedish national has been handed a hefty sentence of 12 years and six months for his involvement in aiding cybercriminals in laundering their illicit funds over a span of ten years. Roman Sterlingov, 36, managed the Bitcoin Fog crypto mixer from 2011 to 2021, processing a staggering 1.2 million bitcoin, valued at approximately $400 million during the time of the transactions.
The majority of these funds were traced back to dark web marketplace dealings involving drugs, computer-related crimes, identity fraud, and even child abuse material, as stated by the Department of Justice (DoJ). After a jury found Sterlingov guilty of money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and money transmission without a license in the District of Columbia in March earlier this year, the sentencing was finally handed down.
Principal Deputy Assistant Attorney General Nicole Argentieri of the Justice Department’s Criminal Division expressed, “Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open for business to criminals looking to hide dirty money. Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children. Today’s sentencing underscores the Justice Department’s commitment to holding those who facilitate criminal activity fully accountable for their crimes.”
In addition to the lengthy prison term, Sterlingov was also ordered to pay over $395 million and relinquish crypto and other assets valued at $1.8 million. Furthermore, he was required to forfeit his interest in the Bitcoin Fog wallet, containing 1345 bitcoin valued at over $103 million.
Crypto mixers have become a favored method for threat actors to obfuscate the origins of their funds and evade detection by blockchain analysts. Law enforcement agencies have been engaged in a continuous battle with the operators of such services, as they are constantly rebranded and moved to evade sanctions and scrutiny. In a recent development, the notorious “Blender” mixer, extensively utilized by North Korean hackers, was rebranded as “Sinbad” in February 2023 to avoid detection.
Sterlingov’s arrest in April 2021 came after he openly advertised Bitcoin Fog on a Twitter page and through a clearnet site. This case serves as a stark reminder of the consequences that await those who engage in facilitating criminal activities through the misuse of cryptocurrencies.