On November 8, 2024, the U.S. Department of Justice announced that Roman Sterlingov, the operator of darknet’s longest-running cryptocurrency “mixer” Bitcoin Fog, had been sentenced to 12 years and 6 months in prison for laundering approximately $400 million worth of bitcoin transactions since Bitcoin Fog’s launch in October 2011. In addition to the prison sentence, an Order of Forfeiture was issued by the court, requiring Sterlingov to pay a forfeiture money judgment of approximately $400 million. Sterlingov was also ordered to forfeit $1.76 million worth of seized cryptocurrencies and monetary assets, as well as his interest in a Bitcoin Fog wallet that contained 1,345 bitcoin valued at approximately $103 million, according to the DOJ.
In March 2024, a District of Columbia federal jury found Sterlingov guilty of money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and money transmission without a license. According to evidence presented at trial, Bitcoin Fog earned the reputation of a “go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement” and was publicly advertised as a tool for anonymizing bitcoin transactions. Most of the cryptocurrency processed through Bitcoin Fog was reportedly linked to transactions involving illegal narcotics, identity theft, child sexual abuse materials, and other cybercrimes.
DOJ Press Release | Superseding Indictment| Order of Forfeiture