Bitcoin Fog Founder Roman Sterlingov Challenges Proposed 30-Year Prison Sentence

Roman Sterlingov, the founder of Bitcoin Fog, is challenging a proposed 30-year prison sentence. He was convicted on money laundering charges in March 2024.

Roman Sterlingov, the founder of the crypto mixing service Bitcoin Fog, is challenging a proposed 30-year prison sentence for his role in the operation.

Sterlingov was convicted on money laundering charges in March 2024 by a jury that found him guilty of operating Bitcoin Fog, which prosecutors say was used to launder nearly $400 million in Bitcoin between 2011 and 2021.

In a memo filed with the U.S. District Court for the District of Columbia on August 15, Sterlingov’s lawyers disputed the prosecutors’ recommendation for a 20 to 30-year sentence, arguing that much of the evidence against him was circumstantial and that there was no direct proof of his control over Bitcoin Fog.

“The evidence at trial aligns Mr. Sterlingov more closely with the role of aiding and abetting, rather than the principal role the government has ascribed to him,” the memo states.

Prosecutors have alleged that Bitcoin Fog was used by criminals to conceal the origins of their funds, with the U.S. government specifically tying the service to transactions linked to drug trafficking, identity theft, and computer fraud.

According to prosecutors, Sterlingov managed these operations, which ultimately led to his conviction.

However, Sterlingov’s defense maintains that while he was connected to Bitcoin Fog, he did not control its day-to-day activities.

They also highlighted the absence of key evidence, such as server logs and private keys, from the trial, arguing that this raises doubts about the justification for a lengthy sentence.

“The government failed to introduce evidence regarding Mr. Sterlingov’s specific involvement in the operation of Bitcoin Fog,” the memo states.

Moreover, Sterlingov’s defense emphasizes his strong commitment to his family and friends, suggesting that this warrants a much lighter sentence.

“Mr. Sterlingov is a devoted father, son, and friend. He has always been there for the people he cares about, and they have always been there for him,” the memo reads.

“A sentence of time served would allow Mr. Sterlingov to immediately return home to his family and resume his role as a contributing member of society.”

Sterlingov’s sentencing, which was initially set for August 21, has been postponed as the court will first address the government’s request to seize assets linked to Bitcoin Fog, including 1,354 BTC that have been sitting in a wallet since 2012.

The potential forfeiture in the case could reach $395 million.

As Sterlingov’s case continues, his legal team is pushing back against the severity of the proposed sentence.

Meanwhile, other notable cases involving crypto mixers are also unfolding.

Roman Storm, a co-founder of Tornado Cash, is set to face trial in December, while another Tornado Cash developer, Alexey Pertsev, is appealing a five-year sentence for money laundering.

The outcomes of these cases are expected to heavily influence how authorities approach similar platforms in the future.

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