Man Gets 12.5 Years for Running Crypto Mixer

A dual Russian-Swedish national was sentenced to 12 years and six months behind bars on Friday, for helping cybercriminals to launder their funds over a decade-long period.

Roman Sterlingov, 36, ran the Bitcoin Fog crypto mixer from 2011 to 2021, processing 1.2 million bitcoin, valued at around $400m at the time of the transactions. 

Most of these funds were linked to dark web marketplace transactions for drugs, computer-related crimes, identity fraud and child abuse material, according to the Department of Justice (DoJ).

Sentencing comes after a jury in March this year 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.

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“Roman Sterlingov laundered over $400m 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 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.”

Sterlingov was also sentenced to pay over $395m and forfeit crypto and other assets valued at $1.8m, as well as his interest in the Bitcoin Fog wallet, which amounted to 1345 bitcoin valued at over $103m.

Crypto mixers are a popular way for threat actors to hide the source of their funds and throw blockchain investigators off the scent.

Law enforcers have for years been playing a game of whack-a-mole with the operators of such services. In February 2023 it emerged that the “Blender” mixer, which had been used extensively by North Korean hackers, was renamed “Sinbad” in a bid to circumvent sanctions and scrutiny.

Sterlingov was arrested in April 2021 after advertising Bitcoin Fog on a Twitter page and through a clearnet site.