Roman Sterlingov, a dual Russian-Swedish national and the founder of the longest-running cryptocurrency “mixer” service on the darknet, was sentenced to 12 years and six months in prison on charges related to a massive cryptocurrency money laundering operations to date.
Sterlingov, 36, was convicted in March 2024 following a month-long trial.
Bitcoin Fog, which Sterlingov operated from 2011 to 2021, was the go-to service for cybercriminals and dark web users seeking secure, anonymous way to “mix” bitcoin transactions. According to court documents, Bitcoin Fog processed over 1.2 million bitcoin transactions valued at approximately $400 million at the time they occurred.
Bitcoin Fog operated as a “mixer,” hiding the origin of cryptocurrency transactions by pooling funds from various users and redistributing them in a way that masked the original sources. Forensic analysis revealed that the bulk of Bitcoin Fog’s transactions were linked to darknet marketplaces specializing in illegal goods and services.
Following his arrest and subsequent extradition to the United States, Sterlingov faced numerous charges, including money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and transmission without a license.
In addition to the 12-year prison term, Sterlingov was ordered to pay a forfeiture money judgment of nearly $396 million. Authorities also seized additional assets linked to Sterlingov, including $1.76 million in other monetary holdings and approximately 1,345 bitcoin stored in Bitcoin Fog’s wallet, currently valued at over $103 million.