Bitcoin Fog founder challenges 30-year sentence following fraud conviction

Roman Sterlingov, the founder of crypto mixer Bitcoin Fog, is challenging a potential 30-year prison sentence following his conviction on several money laundering charges. 

On August 15, Sterlingov’s legal counsel submitted a memorandum to the United States District Court for the District of Columbia contesting the recommended sentences of 20 and 30 years in prison. His lawyers called the sentencing “unwarranted,”  stating that it vastly exceeded the penalties imposed on similar cases.

Sterlingov’s defense team argues against circumstantial evidence 

Stelingov’s lawyers based their defense on the fact that prosecutors had only submitted circumstantial evidence, leaving important details out of the case. They argued against the lack of the Bitcoin Fog server, private keys, or ledger as evidence.

His legal counsel also presented Roman Sterlingov’s record, which shows no criminal history, to the jury and portrayed his selfless commitment to his family’s well-being. They asked for a lower sentence, arguing that Sterlingov was not directly involved with most of the funds that passed through Bitcoin Fog. 

His verdict is consistent with aiding and abetting and not operating Bitcoin Fog or ever possessing the Bitcoin Fog servers. – Sterlingov’s defense team

Roman Storm, co-founder of Tornado Cash, also faces criminal charges in the U.S. for his alleged role in the crypto mixing service. He is scheduled to go to trial in December.

Bitcoin Fog founder’s money laundering charges 

Roman Sterlingov was convicted on multiple counts, including money laundering, conspiracy to money laundering, operating an unlicensed money-transmitting business, and money transmission without a license in DC, in March 2024. 

Prosecutors claimed he used Bitcoin Fog to abet criminals in hiding their illicit trades, such as drug trafficking, identity theft, and computer fraud from law enforcers. 

They also pointed out that from 2011 to 2021, the crypto mixer that Roman operated laundered over $400 million, all connected to criminal activities. 

U.S. Attorney Matthew M. Graves for the District of Columbia also remarked on Roman’s conviction, warning darknet criminals that crypto mixers like Bitcoin Fog cannot hide their identities for long, and sooner or later, they will be traced. He further highlighted how Sterlingov’s conviction shows the commitment of the U.S. government to fight cybercrime.

Roman was meant to be sentenced on August 21, on Judge Randolph Moss’s orders. However, there have been alterations to Roman’s case, and the court will first hear arguments on the government’s seizure of  1,354 bitcoins that have remained dormant since 2012 and a potential $395 million financial judgment.