United

Bitcoin

Tornado Cash

Tornado

Lawyers representing Roman Sterlingov, the founder of cryptocurrency mixer Bitcoin Fog, have argued against a “lengthy” sentence following his conviction on money laundering charges.
In an Aug. 15 filing in the United States District Court for the District of Columbia, Sterlingov’s legal team did not seem to <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.232431/gov.uscourts.dcd.232431.321.0.pdf" target="_blank" rel="noopener nofollow">make</a> a specific sentencing recommendation in response to prosecutors’ petition he should serve between 20 and 30 years in prison. Lawyers for the Bitcoin Fog founder claimed that the government’s recommendations were “unwarranted” based on sentencing in comparable cases.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/c526b390-494d-4813-810d-1e87f5b75c21.png" alt="Crypto mixer founder argues 30-year prison sentence is ‘unwarranted’">
 <figcaption style="text-align: center;">
 Source: Courtlistener
 </figcaption>
</figure>
In March, a jury <a href="https://cointelegraph.com/news/crypto-mixer-bitcoin-fog-roman-sterlingov-convicted-money-laundering">convicted Sterlingov of money laundering</a>, conspiracy to money launder, operating an unlicensed money transmitting business, and money transmission without a license in DC. Prosecutors alleged he operated the crypto mixer from 2011 to 2021, acting as a money laundering service for “criminals seeking to hide their illicit proceeds from law enforcement.”
<h2 id="circumstantial-evidence">‘Circumstantial’ evidence</h2>
According to the US government, Bitcoin Fog facilitated moving roughly $400 million in Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) tied to illicit activities, including drug trafficking, identity theft, and computer fraud. Sterlingov’s lawyers argued he was connected to the crypto mixer but not responsible for its operations.
“A far lower sentence – informed by Mr. Sterlingov’s future, past and unselfish commitment to the wellbeing of his family and friends – is [...] appropriate,” said the sentencing memo. “His verdict is [...] consistent with aiding and abetting and not actually operating Bitcoin Fog, or ever possessing the Bitcoin Fog servers. Most of the evidence at trial was circumstantial and neither the Bitcoin Fog server, server logs, private keys or ledger were ever entered into evidence.”
Related: <a href="https://cointelegraph.com/news/us-house-bill-crypto-mixers-ban-blockchain-integrity-act">Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years</a>
Judge Randolph Moss initially scheduled an Aug. 21 hearing for Sterlingov’s sentencing but later said the court would hear arguments on the government’s order of forfeiture. At issue are assets, including 1,354 BTC in a Bitcoin Fog wallet that hasn’t moved since 2012 and a potential $395 million judgment.
Tornado Cash co-founder Roman Storm, also facing criminal charges in the US for his alleged role with the crypto mixing service, is scheduled to go to trial in December. One of the platform’s developers, Alexey Pertsev, <a href="https://cointelegraph.com/news/alexey-pertsev-seeks-funding-legal-appeal">reported on Aug. 10</a> that he was “back behind bars, appealing a 5-year sentence” for money laundering charges following a guilty verdict in May.
Magazine: <a href="https://cointelegraph.com/magazine/tornado-cash-2-0-the-race-to-build-safe-and-legal-coin-mixers/">Tornado Cash 2.0: The race to build safe and legal coin mixers</a>

Crypto mixer founder argues 30-year prison sentence is ‘unwarranted’

Table of Contents

Cointelegraph

Other articles published on Aug 16, 2024

BlockDAG Price Prediction as Presale Raises $66M

China and Russia Turn to Bitcoin and other Cryptocurrencies Amid De-Dollarization and Banking San...

Wisconsin Investment Board Invests Further in Bitcoin Through BlackRock ETF, Exits Grayscale

How BitTorrent Chain is advancing blockchain interoperability

Crypto.com Secures Champions League Sponsorship in High-Profile Deal

Dark DAOs: Vitalik Buterin explores ways to mitigate bribery threats

Join our free newsletter for daily crypto updates!