Founder of Bitcoin Fog Convicted for Facilitating Darknet Money Laundering

By: Eva Baxter

Roman Sterlingov, founder of the cryptocurrency mixer service 'Bitcoin Fog', has been convicted by a federal jury in Washington on several counts related including conspiring to launder money, money laundering, and failing to register a money transmitting service. The conviction follows attribution of over 1.2 million bitcoins (worth approximately $860 million) being laundered, linked to notorious darknet markets known for illicit drug sales.

Sterlingov, a Russian-Swiss national, reportedly facilitated over $400 million in untraceable transactions, some originating from illegal markets. The case has thrown light on the role of Chainalysis, a firm backed by Wall Street, used by the Justice Department and Treasury Department to trace cryptocurrency flows in money laundering cases. During the trial, Sterlingov denied running Bitcoin Fog, contending he was involved in information technology and helped clients create domain names.

The conviction marks another step by the United States in its crackdown on crypto criminals, paving the way for stronger regulatory measures on cryptocurrency flows. Despite a temporary 2% dip in Bitcoin's value during the trial, the cryptocurrency rebounded quickly, highlighting the market's resilience against such news.