Crypto Mixer Founder Challenges 30-Year Prison Sentence as Unfair

Roman Sterlingov, the founder of the cryptocurrency mixer Bitcoin Fog, is pushing back against what his lawyers argue is an excessively harsh prison sentence. Following his conviction on multiple money laundering charges, Sterlingov’s legal team has criticized the government’s recommendation for a 20 to 30-year prison term, calling it “unwarranted” when compared to similar cases.

Sterlingov was convicted in March by a jury for money laundering, conspiracy, and operating an unlicensed money transmitting business, among other charges. Prosecutors claim that from 2011 to 2021, Sterlingov’s Bitcoin Fog service facilitated the laundering of approximately $400 million in Bitcoin, with funds linked to drug trafficking, identity theft, and other criminal activities. Despite this, Sterlingov’s lawyers contend that he was merely associated with the platform, not its operator.

In a recent court filing, his defense argued for a much lighter sentence, emphasizing Sterlingov’s commitment to his family and community. They further claimed that much of the evidence against him was circumstantial, pointing out that key items like Bitcoin Fog’s server logs and private keys were never produced in court.

As the sentencing date approaches, the court will also consider the government’s order of forfeiture, which includes a significant sum of Bitcoin still held in a Bitcoin Fog wallet since 2012. Sterlingov’s case echoes the legal troubles of Tornado Cash co-founder Roman Storm, who faces a trial later this year on similar charges related to crypto mixing services.

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