Roman Sterlingov, a dual Russian-Swedish national, was sentenced today to 12 years and six months in prison for his role in operating Bitcoin Fog, the longest-running cryptocurrency “mixer” on the darknet. The service, which Sterlingov ran from 2011 to 2021, was used to launder hundreds of millions of dollars in illicit proceeds for criminals involved in drug trafficking, identity theft, and other illegal activities.
Bitcoin Fog operated as an anonymous cryptocurrency mixing service, allowing users to conceal the origins of their bitcoin transactions by blending them with other funds. Over the course of its decade-long operation, Bitcoin Fog facilitated the laundering of more than 1.2 million bitcoin—worth approximately $400 million at the time of the transactions. The funds were linked to a range of criminal activities, including darknet drug markets, cybercrime, identity theft, and the distribution of child sexual abuse material.
In March 2024, after a month-long trial, a jury convicted Sterlingov of money laundering conspiracy, operating an unlicensed money transmitting business, and other related offenses. The conviction was secured in the District of Columbia, where Sterlingov faced charges for running the illicit service without proper licenses and for his role in aiding and abetting criminal actors on the darknet.
In addition to his prison sentence, Sterlingov was ordered to pay a forfeiture judgment of $395,563,025.39, which represents the amount he profited from the illegal operation. He was also required to forfeit approximately 1,345 bitcoin, valued at over $103 million, that were held in Bitcoin Fog’s wallet, along with other seized cryptocurrency and monetary assets valued at around $1.76 million.
High-Profile Case Sends Strong Message
“This sentence reflects our commitment to dismantling the criminal networks that thrive in the darkest corners of the internet,” said Deputy Attorney General Lisa Monaco. “Sterlingov’s operation facilitated the flow of illicit money for criminals involved in a range of heinous activities, from drug trafficking to child exploitation. Today, he pays the price for his role in enabling such crimes.”
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, emphasized the scale of Sterlingov’s operations. “He laundered over $400 million in criminal proceeds, enabling criminals to hide their illegal gains. This sentencing shows that the Department of Justice will hold those responsible for such operations fully accountable.”
Matthew M. Graves, U.S. Attorney for the District of Columbia, warned that the case serves as a warning to others. “Those who facilitate illegal transactions online will face significant legal consequences. This prosecution proves that we have the expertise to uncover and prosecute complex darknet operations.”
Sterlingov’s arrest and conviction were the result of a coordinated international investigation led by the IRS Criminal Investigation (IRS-CI) and the FBI’s Washington Field Office, with crucial assistance from law enforcement agencies in Sweden, Denmark, Romania, Japan, the UK, and Europol.
International Efforts to Combat Darknet Crime
Chief Guy Ficco of IRS-CI noted that Sterlingov’s attempts to conceal his criminal activities using technology ultimately failed due to the efforts of law enforcement. “This significant prison term, coupled with the financial penalties, underscores the seriousness of this conviction and sends a clear message that such criminal activity will not be tolerated.”
David Sundberg, Assistant Director of the FBI, added, “The FBI and our partners will continue to disrupt the criminal ecosystem, targeting those who provide essential services for cybercriminals. This case is another example of our commitment to bringing offenders to justice.”
The Bitcoin Fog case highlights the growing global cooperation needed to combat cybercrime and illicit cryptocurrency activities, which continue to flourish on the darknet despite increasing law enforcement efforts.
Sterlingov’s conviction marks a major victory for authorities in the fight against darknet-based money laundering and provides a stark reminder of the consequences facing those who operate criminal enterprises online.
