A landmark sentencing has closed the chapter on Bitcoin Fog, the longest-running bitcoin mixing service on the darknet, with its operator facing over a decade in prison.

The Fall of Bitcoin Fog: DOJ’s Pursuit Unmasks a Decade-Long Darknet Operation

The U.S. Department of Justice (DOJ) announced Friday that Roman Sterlingov has been sentenced to prison for operating Bitcoin Fog, a BTC mixing service. The DOJ stated:

A dual Russian-Swedish national was sentenced today to 12 years and six months in prison for his operation of the longest-running bitcoin money laundering service on the darknet.

Evidence presented at trial revealed that from 2011 to 2021, Bitcoin Fog was a popular destination for criminals looking to obscure illicit proceeds, with the platform handling over 1.2 million bitcoin transactions, valued at over $400 million at the time. The majority of this activity came from darknet marketplaces, supporting crimes such as narcotics trafficking, identity theft, and child exploitation.

Deputy Attorney General Lisa Monaco commented on the sentencing, stating: “Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price.” Principal Deputy Assistant Attorney General Nicole M. Argentieri emphasized the scale of Sterlingov’s operation, adding: “Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open for business to criminals looking to hide dirty money.”

Chief Guy Ficco of IRS Criminal Investigation stressed: “Today’s significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction.”

As part of the sentence, Sterlingov must pay a substantial financial penalty. The DOJ explained:

In addition to his term of imprisonment, Sterlingov was sentenced to pay a forfeiture money judgment in the amount of $395,563,025.39, and forfeiture of seized cryptocurrencies and monetary assets valued at approximately $1.76 million

“In addition, Sterlingov was ordered to forfeit his interest in the Bitcoin Fog wallet, totaling approximately 1,345 bitcoin and currently valued at more than $103 million,” the Justice Department noted.