Bitcoin Fog Founder Sentenced to 12.5 Years in Prison for Crypto Money Laundering

Bitcoin Fog Founder Sentenced to 12.5 Years in Prison for Crypto Money Laundering

Roman Sterlingov, the founder of the darknet’s Bitcoin mixer “Bitcoin Fog,” has been sentenced to 12.5 years in prison as part of a broader U.S. government crackdown on cryptocurrency mixing services. In addition to his prison term, Sterlingov faces a massive “forfeiture money judgment” of $395.5 million, along with the forfeiture of crypto and other funds valued at around $1.76 million.

Sterlingov was convicted in March on charges of money laundering, conspiracy, operating an unlicensed money-transmitting business, and transmitting money without a license. Prosecutors initially pushed for a 20- to 30-year sentence, labeling Bitcoin Fog as a “go-to” platform for criminals looking to obscure their transactions. The Department of Justice (DOJ) claims that Bitcoin Fog processed over 1.2 million Bitcoin during its decade-long run, estimated at approximately $400 million at the time of the transactions.

Despite the conviction, Sterlingov maintained throughout his trial that he was merely a user of Bitcoin Fog, not its operator. However, the DOJ argued that Bitcoin Fog was a hub for hiding illicit funds, allowing users to evade law enforcement.

The case has sparked debate within the crypto community. Crime analyst L0la L33tz criticized the ruling as a “grave miscarriage of justice,” calling it part of a broader government campaign against financial privacy. Others, like Mario Nawfal’s crypto-focused show Roundtable, viewed the harsh sentence as a strong warning to other crypto mixers, asserting that engaging in “shady” activities will lead to severe consequences.

The U.S. government’s crackdown on crypto mixers has intensified recently. Earlier this month, it was announced that Tornado Cash co-founder Roman Storm would stand trial in April 2025 on charges related to money laundering and sanctions violations. In a separate case, Keonne Rodriguez, associated with the crypto mixer Samourai Wallet, was also charged with money laundering but has since pled not guilty.

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