According to a recent announcement, Roman Sterlingov, a Russian-Swedish national, was sentenced to 12 years and six months in prison today for his involvement in operating Bitcoin Fog, the darknet’s longest-running bitcoin mixing service, used primarily for laundering illicit proceeds. Sterlingov, 36, faced these charges following a thorough investigation and a jury trial that concluded in March 2024.

Bitcoin Fog, which Sterlingov managed from 2011 to 2021, functioned as a cryptocurrency “mixer” service that obscured the origins of bitcoin transactions, enabling criminals to hide their proceeds from authorities. Over its ten-year operation, Bitcoin Fog processed over 1.2 million bitcoin transactions, valued at approximately $400 million at the time of the transactions. A significant portion of this cryptocurrency came from darknet markets associated with illegal drug sales, computer crimes, identity theft, and child exploitation.

Sterlingov’s sentencing in the District of Columbia includes substantial financial penalties. Alongside his prison term, he must pay a forfeiture money judgment totaling $395.5 million, plus additional forfeitures of seized assets and cryptocurrency worth approximately $1.76 million. Furthermore, the court ordered the forfeiture of Sterlingov’s interest in the Bitcoin Fog wallet, amounting to around 1,345 bitcoin, valued at over $103 million.

Justice Department officials emphasized the significance of Sterlingov’s sentencing, highlighting the Department’s commitment to dismantling criminal networks that exploit the anonymity of the internet. Deputy Attorney General Lisa Monaco stated, “In the deepest corners of the internet, Sterlingov provided a haven for criminals of all kinds, from drug traffickers to identity thieves. Today’s sentence reflects our dedication to holding those who enable criminal activity accountable.”

Additional statements from Justice Department officials underscored the impact of Sterlingov’s activities. Nicole M. Argentieri, Principal Deputy Assistant Attorney General of the Criminal Division, emphasized the Justice Department’s ongoing efforts to tackle illicit activity in the cryptocurrency space, noting that this sentencing is a reminder of the severe consequences awaiting those who facilitate online criminal enterprises.

The investigation leading to Sterlingov’s conviction was a collaborative effort among the IRS Criminal Investigation (IRS-CI), the FBI’s Washington Field Office, and the Justice Department’s Office of International Affairs. Global partners, including authorities from Japan, Sweden, Denmark, Romania, and the United Kingdom, as well as Europol, provided critical support throughout the investigation.

Sterlingov was found guilty of multiple charges, including money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and money transmission without a license. The case was prosecuted by Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Justice Department’s Computer Crime and Intellectual Property Section, along with Special Assistant U.S. Attorney Christopher B. Brown.

The sentence marks a significant step in the fight against online financial crimes, serving as a clear message to those who attempt to conceal illegal activities behind the veil of digital anonymity.

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