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. A jury found him guilty of operating Bitcoin Fog, a crypto mixing service. Prosecutors claim the service facilitated laundering nearly $400 million in Bitcoin from 2011 to 2021. His legal team argues that the government’s proposed sentence is excessive.
On August 15, Roman Sterlingov’s lawyers submitted a memo to the U.S. District Court for the District of Columbia. They disputed the prosecutors’ recommendation for a 20 to 30-year sentence. The defense emphasized that much of the evidence was circumstantial. They argued there was no direct proof of Sterlingov’s control over Bitcoin Fog. The memo stated that his verdict aligns more with aiding and abetting, not actually operating Bitcoin Fog.
Sterlingov’s Defense Challenges Conviction, Cites Lack of Evidence
Prosecutors claim criminals used Bitcoin Fog to hide the origins of their funds. The U.S. government alleges the service processed transactions linked to drug trafficking, identity theft, and computer fraud. They accuse Sterlingov of managing these operations, which led to his conviction.
Sterlingov’s defense argues he was connected to Bitcoin Fog but did not control its daily activities. They emphasize that key evidence, such as server logs and private keys, was not presented at trial. As a result, this absence raises doubts about the justification for a lengthy sentence.
Additionally, the defense highlights Sterlingov’s strong commitment to his family and friends. They suggest this commitment warrants a much lighter sentence.
Crypto Mixer Cases Highlight Rising Legal Pressure on Industry
Sterlingov’s sentencing, set for August 21, has been postponed. The court will first address the government’s request to seize assets linked to Bitcoin Fog. This includes 1,354 BTC held in a wallet since 2012. The potential forfeiture could reach $395 million.
As the case moves forward, Sterlingov’s legal team continues to argue against the proposed sentence’s severity. Meanwhile, other similar cases are developing. Tornado Cash co-founder Roman Storm faces trial in December. Another Tornado Cash developer, Alexey Pertsev, is appealing a five-year sentence for money laundering.
As these cases continue to unfold, they underscore the growing attention on crypto mixers and their role in illegal activities. Consequently, the outcomes may significantly influence how authorities approach similar platforms in the future.
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