On Tuesday, the founder of cryptocurrency mixer Bitcoin Fog was sentenced in a Washington, D.C., court.
According to a Department of Justice press release, the crypto mixer was operated by Sterlingoff for approximately 10 years and was used as a money laundering service. The agency also claims that Bitcoin Fog moved 1.3 million bitcoins during its operations, worth about $400 million at the time. It is said to have been used on the Silk Road and Agora.
Roman Sterlingoff was found guilty of conspiracy, sting operations, and operating an unauthorized money transfer business. His sentencing hearing is scheduled for July 15, according to a Department of Justice press release.
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“The majority of the cryptocurrencies came from darknet markets and were linked to illegal drugs, computer fraud and abuse, and identity theft,” the press release said.
Thor Ekeland, Sterlingoff's lawyer, said: Said The team will appeal the verdict.
“Evidence presented at trial clearly showed that the defendants laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the source of the funds,” said Jim Lee, Director of IRS Criminal Investigation. said.
read more: Bankman Fried's lawyers argue for leniency on grounds of charity and character
Starlingov, a dual citizen of Russia and Sweden, was arrested at a Los Angeles airport in 2021. He has been in custody since his arrest.
The Justice Department further claimed in a press release on Tuesday that Sterlingoff earned “millions of dollars in fees from Bitcoin Fog transactions.”
Sterlingoff's ruling is the latest in a series of victories for the U.S. government in crypto-related litigation. The jury's findings were announced just weeks before FTX co-founder Sam Bankman Fried was due to appear in court for sentencing.
Bankman Fried's sentence is expected to be formally handed down on March 28th.
The former CEO was found guilty late last year after a month-long trial in New York City. He is currently seeking a sentence of up to seven years. However, he could be sentenced to up to 110 years in prison.
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