A dual Russian-Swedish national was sentenced today to 12 years and six
months in prison for his operation of the longest-running bitcoin money
laundering service on the darknet.
According to court documents and evidence presented at trial, from 2011
through 2021, Roman Sterlingov, 36, was involved in operating Bitcoin
Fog, the darknet’s longest-running cryptocurrency “mixer.” Over the
course of its decade-long operation, Bitcoin Fog gained notoriety as a
go-to money laundering service for criminals seeking to hide their
illicit proceeds from law enforcement and processed transactions
involving over 1.2 million bitcoin, valued at approximately $400
million at the time the transactions occurred. The bulk of this
cryptocurrency came from darknet marketplaces and was tied to illegal
narcotics, computer crimes, identity theft, and child sexual abuse
material.
In March 2024, after a one-month trial, a jury found Sterlingov guilty
of money laundering conspiracy, money laundering, operating an
unlicensed money transmitting business, and money transmission without
a license in the District of Columbia.
In addition to his term of imprisonment, Sterlingov was sentenced to
pay a forfeiture money judgment in the amount of $395,563,025.39, and
forfeiture of seized cryptocurrencies and monetary assets valued at
approximately $1.76 million. In addition, Sterlingov was ordered to
forfeit his interest in the Bitcoin Fog wallet, totaling approximately
1,345 bitcoin and currently valued at more than $103 million.
“Roman Sterlingov ran the longest-running bitcoin money laundering
service on the darknet, and today he paid the price,” said Deputy
Attorney General Lisa Monaco. “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. Today’s sentence reflects the Department’s
determination to dismantle the criminal networks that enable criminal
actors to flourish and ensure consequences for the criminals operating
them.”
“Roman Sterlingov laundered over $400 million in criminal proceeds
through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open
for business to criminals looking to hide dirty money,” said Principal
Deputy Assistant Attorney General Nicole M. Argentieri, head of the
Justice Department’s Criminal Division. “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. I am especially proud of
the dedicated investigators and prosecutors who worked tirelessly to
unmask and prosecute the Bitcoin Fog scheme.”
“As proven at trial, Roman Sterlingov created and used an online tool
to process hundreds of millions in illegal transactions, enabling
darknet drug dealers and those who sell child sexual abuse material, to
operate,” said U.S. Attorney Matthew M. Graves for the District of
Columbia. “Today’s sentence sends an unmistakable message: those who
help criminals with online payments for their illegal activities will
face serious penalties. This prosecution also provides more proof that
we have the skilled investigators and talented prosecutors needed to
hold those who operate these darknet sites accountable.”
“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,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI).
“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.”
“The prosecution of Roman Sterlingov and the sentence imposed today
should serve as a warning to cybercriminals,” said Assistant Director
in Charge David Sundberg of the FBI. “The FBI will not hesitate to use
all tools at its disposal and will leverage our extensive partnerships
to disrupt the cybercriminal ecosystem and the individuals who provide
the key services that facilitate criminal activity.”
The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington
Field Office investigated the case. The Justice Department’s Office of
International Affairs and FBI’s Virtual Asset Unit provided invaluable
assistance. Additional assistance was provided by Japanese, Swedish,
Danish, Romanian, and UK authorities, as well as Europol.
Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal
Division’s Computer Crime and Intellectual Property Section (CCIPS) and
Special Assistant U.S. Attorney Christopher B. Brown for the District
of Columbia are prosecuting the case. Pelker is a member, and Brown is
a former member, of CCIPS’ National Cryptocurrency Enforcement Team.
Former CCIPS Paralegal Specialist Dr. Divya Ramjee and Paralegal
Specialist Angela De Falco for the District of Columbia provided
valuable assistance.
