Russian-Swedish National Sentenced to 12 Years for Money Laundering Through Crypto Mixer
Summary:
A dual Russian-Swedish national, Roman Sterlingov, has been sentenced to 12 years and six months in prison for his involvement in helping cybercriminals launder their funds over a period of ten years. Sterlingov operated the Bitcoin Fog crypto mixer from 2011 to 2021, processing 1.2 million bitcoin valued at approximately $400 million at the time of the transactions. The majority of these funds were connected to illicit activities on the dark web, including drug transactions, computer-related crimes, identity fraud, and child exploitation.
Sentencing and Charges:
In March of this year, Sterlingov was found guilty by a jury of money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and money transmission without a license in the District of Columbia. The sentencing was handed down after his involvement in laundering over $400 million in criminal proceeds through Bitcoin Fog was exposed. Sterlingov’s actions facilitated criminal activities such as drug trafficking, computer crime, identity theft, and child exploitation. He has been ordered to pay over $395 million in restitution and forfeit crypto and other assets valued at $1.8 million, including his interest in the Bitcoin Fog wallet containing 1345 bitcoin valued at over $103 million.
Crypto Mixers and Law Enforcement:
Crypto mixers like Bitcoin Fog are popular tools used by threat actors to conceal the origins of their funds and evade blockchain investigators. Law enforcement agencies have been combating these services for years, with operators frequently changing names and tactics to avoid detection. In a recent case, the “Blender” mixer utilized by North Korean hackers was rebranded as “Sinbad” in an attempt to bypass sanctions and scrutiny. Sterlingov’s arrest in April 2021 came after he advertised Bitcoin Fog on social media and clearnet websites, leading to his prosecution and subsequent sentencing.
Overall, the case highlights the ongoing battle between law enforcement and cybercriminals in the realm of cryptocurrency money laundering. The Justice Department’s commitment to holding individuals like Sterlingov accountable for their crimes sends a strong message to those involved in illicit activities using digital assets.