Founder of Bitcoin Fog, Roman Sterlingov, has been found guilty of money laundering in a United States District Court after a verdict on Tuesday. Sterlingov, aged 35, faced charges including money laundering, money laundering conspiracy, operating an unlicensed money-transmitting business, and violations of the D.C. Money Transmitters Act. Despite Sterlingov’s claims that he was only a user of the service, evidence presented during the trial revealed his central role in operating Bitcoin Fog from October 2011 to April 2021. The service facilitated the laundering of more than 1.2 million Bitcoin, valued at $400 million at the time, with the majority of funds originating from darknet marketplaces associated with illegal activities such as narcotics, computer fraud abuse, and child exploitation. Sterlingov’s sentencing is scheduled for July 15, and assets seized from Bitcoin Fog, including cryptocurrency holdings, have been ordered for forfeiture.
In a separate case, Roman Storm, co-founder of Tornado Cash, faces charges including conspiracy to commit money laundering and operating an unlicensed money-transmitting business. Storm has pleaded not guilty and awaits trial in September. Tornado Cash, a cryptocurrency mixer, has faced scrutiny from authorities, leading to its inclusion on the US Treasury’s Specially Designated Nationals list, prohibiting Americans from using the service. Despite arguments that Tornado Cash merely provides software for decentralized money transmission, its crackdown signals potential implications for developers working on privacy-oriented applications.