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A US federal judge has sentenced Roman Sterlingov, the founder of Bitcoin Fog, to 12.5 years in prison for money laundering related to darknet markets, the Justice Department announced.
In addition to his prison sentence, Sterlingov must forfeit $395 million and the money in a Bitcoin Fog wallet valued at over $103 million. This decision has sparked significant debate within the crypto community, especially around issues of privacy and government surveillance.
Privacy advocates react to Bitcoin Fog founder’s verdict and forfeiture
The prosecutors at first demanded a prison sentence of 30 yearsarguing that Sterlingov committed perjury by denying his involvement in Bitcoin Fog. However, Sterlingov insisted in court that he was just a user and not the operator.
His lawyer, Tor Ekeland, pointed to a lack of direct evidence. The lawyer argued that the authority had no eyewitness accounts or platform logs to support their position on its control of the blending service.
Despite the defense’s arguments, prosecutors alleged that Bitcoin Fog had facilitated hundreds of millions in untraceable transactions. Many of these transactions were reportedly related illegal activities on darknet marketplaces.
Data from the case suggests that from 2011 to 2021, Bitcoin Fog became a service of choice for individuals looking to obscure transactions related to illegal operations, handling more than 1.2 million transactions. Bitcoin – an amount estimated at the time at around $400 million.
“Roman Sterlingov ran the longest-running bitcoin laundering service on the darknet, and today he paid the price. In the deepest reaches 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,” said Deputy Attorney General Lisa Monaco.
Nicole M. Argentieri, Deputy Assistant Attorney General, also stated that Sterlingov’s actions enabled criminals to launder money from a wide range of crimes, including drug trafficking, identity theft and child exploitation. She emphasized that the Department of Justice remains committed to holding those who enable criminal activity fully accountable.
The U.S. government’s ongoing investigation into privacy-oriented protocols, including Tornado Cashhas raised questions from privacy advocates and industry insiders. Crypto commentator L0la L33tz expressed his strong disapproval of the recent verdict. They claim that Sterlingov’s case is an unfair move the government’s ‘war on financial privacy’.
“The government is now seizing the little Bitcoin he has left, while the billions of dollars he allegedly made from operating Bitcoin Fog still remain missing. This entire case is a serious miscarriage of justice and another stepping stone in the US government’s war on financial privacy,” L33tz said. declared.
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