12 years in prison for man who operated bitcoin money laundering wallet
The man responsible for operating the longest-running bitcoin money laundering service on the darknet was handed a 150-month prison sentence this week by a federal judge in Washington, D.C. File Photo by John Angelillo/UPI | License Photo
Nov. 9 (UPI) -- The man responsible for operating the longest-running bitcoin money laundering service on the darknet was handed a 150-month prison sentence this week by a federal judge in Washington, D.C.
Roman Sterlingov was also ordered to surrender more than $395.5 million worth of assets, including cryptocurrency, according to the Justice Department.
Following a one-month trial in March, the dual Russian-Swedish citizen was convicted of money laundering conspiracy, money laundering, operating an unlicensed money transmitting business and money transmission without a license in the District of Columbia.
The 36-year-old operated Bitcoin Fog between 2011 and 2021, allegedly laundering $400 million in illicit proceeds for all manner of international criminals, the Justice Department contended.
"Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price," Deputy Attorney General Lisa Monaco said in the Justice Department's statement.
"In the deepest corners of the internet, he provided a home for criminals of all stripes, from drug traffickers to identity thieves, to store hundreds of millions of dollars in illicit proceeds."
"Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children. Today's sentencing underscores the Justice Department's commitment to holding those who facilitate criminal activity fully accountable for their crimes," said Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department's Criminal Division.
In addition to the prison sentence and financial penalty, US District Judge for Washington Randolph Moss also ordered Sterlingov to forfeit his entire interest in the Bitcoin Fog wallet, which currently holds 1,345 bitcoin valued at more than $103 million.
Prosecutors asked Moss for a 30-year prison sentence, while defense lawyers asked for no more than seven years of incarceration.
Sterlingov was facing a maximum of 50 years in prison following the conviction.
"Clearly, Sterlingov's attempt to shroud his illicit activities in a cloak of anonymity ultimately failed against the sophisticated collaborative work of our Criminal Investigation special agents and partners," IRS Criminal Investigation Chief Guy Ficco said in the Justice Department's statement.
"Today's significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction and should serve as a stark notice that this type of criminal activity will not be tolerated."
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