Bitcoin Fog founder Sterlingov sentenced to 12.5 years amid U.S. crypto crackdown
U.S. government increases monitoring of crypto mixers
Roman Sterlingov, the founder of the cryptocurrency mixer Bitcoin Fog, has been sentenced to 12.5 years in prison following his conviction on money laundering and operating an unlicensed money-transmitting business.
As outlined in the Department of Justice’s press-release, the sentence, handed down after a U.S. jury found him guilty in March, is part of the government’s ongoing effort to dismantle services that allegedly facilitate criminal transactions in the digital currency sphere.
Bitcoin Fog, launched over a decade ago, gained popularity as a tool for obscuring the origins of cryptocurrency transactions. The U.S. Department of Justice (DOJ) has called the service a “go-to money laundering hub” for criminals seeking to evade law enforcement, asserting that it facilitated over 1.2 million Bitcoin transactions valued at approximately $400 million at the time.
Authorities claim Sterlingov used Bitcoin Fog to aid in hiding illicit proceeds, further arguing that he must forfeit a substantial sum as part of his sentence. The court ordered Sterlingov to pay $395.5 million in forfeiture, alongside the forfeiture of seized crypto assets worth roughly $1.76 million.
Crypto mixers under increased scrutiny
The case against Sterlingov signals the U.S. government’s heightened focus on crypto mixers, tools that enable users to anonymize transactions by pooling and redistributing funds. This conviction aligns with several recent actions targeting crypto mixing services. Just last week, Tornado Cash co-founder Roman Storm’s trial for alleged money laundering and sanctions violations was postponed to April 2025. Earlier in 2023, Storm and his co-founder were charged with running an unlicensed money-transmitting business.
The DOJ’s firm stance on crypto mixers has raised questions within the digital finance community regarding privacy and regulatory boundaries. Critics, including crime commentator L0la L33tz, argue that cases like Sterlingov’s represent a “miscarriage of justice” and are emblematic of what they describe as the government’s “war on financial privacy.” Sterlingov maintains he was merely a user of Bitcoin Fog, not its operator.
The North Korean hacker group BlueNoroff has ramped up its attacks on the cryptocurrency industry through a fresh malware campaign aimed at Bitcoin and other digital assets. Known for its ties to the Lazarus Group, BlueNoroff has employed advanced phishing tactics since 2019, with the latest malware, "Hidden Risk," designed to infiltrate MacOS devices through a multi-stage infection process.
