A landmark ruling brings the story of Bitcoin Fog to a close. This was the longest-running Bitcoin mixing service on the dark web, and its operator was sentenced to over ten years in prison.
The Fall of Bitcoin Fog: The Department of Justice's Investigation Reveals a Decade-Long Dark Web Operation
The U.S. Department of Justice (DOJ) announced on Friday that Roman Sterlingov was sentenced for operating Bitcoin Fog. The operator of this BTC mixing service will face 12 years and 6 months in prison. The Department of Justice stated:
A defendant with dual Russian and Swedish nationality was sentenced for operating the longest-running Bitcoin laundering service on the dark web.
Evidence presented during the trial indicated that from 2011 to 2021, Bitcoin Fog was a popular platform for criminals to conceal illegal proceeds, handling over 1.2 million Bitcoin transactions, with a total value exceeding $400 million at the time. Most of these transactions originated from dark web markets and involved criminal activities such as drug trafficking, identity theft, and child exploitation.
Deputy Attorney General Lisa Monaco stated after the ruling: "Roman Sterlingov operated the longest-running Bitcoin laundering service on the dark web, and now he must pay the price for it." Acting Chief Assistant Attorney Nicole M. Argentieri emphasized the scale of Sterlingov's operations: "He laundered over $400 million in criminal proceeds through Bitcoin Fog, providing services to criminals seeking to conceal dirty money."
Guy Ficco, Chief of the IRS Criminal Investigation, noted: "Today’s severe imprisonment and hundreds of millions in financial sanctions underscore the seriousness of this conviction."
As part of the judgment, Sterlingov must pay a hefty financial penalty. The Department of Justice explained:
In addition to imprisonment, Sterlingov was also ordered to pay $395.56 million in forfeiture judgments, along with the seizure of approximately $1.76 million in cryptocurrency and other assets.
"Additionally, Sterlingov was ordered to forfeit his bitcoins in the Bitcoin Fog wallet, approximately 1,345 coins, currently worth over $103 million," the Department of Justice added. $BTC