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Roman Sterlingov Found Guilty in Jury Trial
Roman Sterlingov has been found guilty by a jury on all charges related to the Bitcoin Fog coin mixer, according to a US Department of Justice press release. Sterlingov was charged with conspiracy, sting money laundering, operating an unlicensed money-transmitting business, and violations of the DC Money Transmitters Act. Collectively, these charges carry a maximum penalty of 50 years in prison.
Bitcoin Fog functioned as a crypto mixer or tumbler that allowed users to conceal their transaction paths on the blockchain. Operating from October 2011 to April 2021, the service facilitated the movement of more than 1.2 million BTC during its existence. At the time of the transactions, this amount was valued at more than $400 million, but it is now estimated at over $85 billion based on current prices.
Government analysis of blockchain activity and records from crypto exchanges indicated that Sterlingov received substantial commissions for operating the service.
Sterlingov’s Planned Appeal
Despite the jury’s decision, Sterlingov intends to appeal the verdict. Accounts of the trial from Bloomberg highlighted the creation of Bitcoin Fog as a focal point. Prosecutors detailed how Sterlingov funded the domain name for Bitcoin Fog and appeared to conduct initial tests with small transactions before making the service publicly available.
In his testimony, Sterlingov denied operating the service directly. He claimed to have registered Bitcoin Fog’s domain name on behalf of a client while working as a freelancer for a marketing and web development firm. Although he acknowledged using Bitcoin Fog, he maintained that he did not receive any fees from the service.
Sterlingov’s attorney, Tom Ekeland, emphasized the lack of eyewitness testimonies or server logs offering definitive proof of his client’s involvement in operating Bitcoin Fog. Both Sterlingov and Ekeland plan to challenge the outcome of the trial. Ekeland expressed disappointment with the verdict and characterized the current phase of legal proceedings as a transitional stage.
In a significant development in February, prosecutors called upon the previously convicted Bitfinex hacker Ilya Lichtenstein to testify against Sterlingov. Lichtenstein clarified that he had minimal direct interaction with Sterlingov and had limited involvement with Bitcoin Fog.
The outcome of the trial underscores the legal complexities surrounding cryptocurrency services and the challenges of establishing accountability in cases involving digital assets.
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