Bitcoin Fog Operator Gets 12.5 Years for Longest-Running Bitcoin Laundering

Bitcoin Fog operator sentenced to 12.5 years for laundering $400M in crypto. The dark web’s longest-running mixer processed 1.2M bitcoin tied to illegal activities over 10 years.

Roman Sterlingov, a 36-year-old dual Russian-Swedish national, has been sentenced to 12 years and six months in prison for operating Bitcoin Fog, the longest-running cryptocurrency “mixer” on the dark web.

****The Bitcoin Fog Operation****

Between 2011 and 2021, Sterlingov’s Bitcoin Fog processed over 1.2 million Bitcoin transactions, valued at approximately $400 million at the time of the transactions. The majority of these transactions originated from dark web marketplaces and were linked to illicit activities such as narcotics trafficking, computer crimes, identity theft, and child sexual abuse material.

Bitcoin Fog’s clearnet site (Screenshot: Hackread.com)

****The Investigation and Prosecution****

Sterlingov’s operation was brought to an end in March 2024, when a jury found him guilty of money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and money transmission without a license in the District of Columbia.

The investigation, led by the IRS-CI District of Columbia Cyber Crime Unit and the FBI Washington Field Office, involved collaboration with international authorities, including those from Japan, Sweden, Denmark, Romania, and the UK, as well as Europol.

In addition to his prison sentence, Sterlingov has been ordered to pay a forfeiture money judgment of $395,563,025.39 ($395.56 million) and to forfeit seized cryptocurrencies and monetary assets valued at approximately $1.76 million. He will also forfeit his interest in the Bitcoin Fog wallet, which contains approximately 1,345 Bitcoins, currently valued at over $103 million.

“Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri.

While cybercriminals and money launderers have become increasingly sophisticated at using advanced anonymization techniques to conceal their operations, this case also highlights law enforcement’s enhanced capability to track and prosecute cryptocurrency-based money laundering.

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