2024

United

Bitcoin

Read

<p class="is-style-lead">The founder of crypto mixing service Bitcoin Fog has been found guilty by a federal court of laundering money linked to illicit drug sales on the dark web.</p>
<p>On Tuesday, a <a href="https://www.justice.gov/usao-dc/pr/jury-finds-russian-swedish-operator-bitcoin-fog-guilty-running-darknet-cryptocurrency" target="_blank" rel="noopener noreferrer nofollow">deliberation</a> that lasted approximately two days led the jury to find Roman Sterlingov responsible for obscuring the origins of crypto transactions, thereby complicating efforts to trace the financial proceeds from <a href="https://crypto.news/hackers-target-coinbase-binance-staff-with-phishing-clones-of-gmail-icloud/" rel="noopener noreferrer nofollow">criminal</a> endeavors. The prosecution argued that Bitcoin Fog had been instrumental in masking over $400 million in transactions, with $78 million directly tied to notorious dark web marketplaces.</p>
<p>Sterlingov’s <a href="https://twitter.com/DeFiDefenseLaw/status/1767591775177256989" target="_blank" rel="noopener noreferrer nofollow">conviction</a> marks another significant victory in the United States’ intensified efforts to combat cryptocurrency-related criminal activities. The series of legal actions also includes the notable conviction of FTX’s co-founder, <a href="https://crypto.news/ftx-saga-what-happened-to-ftx/" rel="noopener noreferrer nofollow">Sam Bankman-Fried</a>, and the latest settlement with Binance. Sterlingov, holding dual Russian and Swiss citizenship, refuted claims of his involvement with Bitcoin Fog during the trial.</p>
<p>Sterlingov now faces a maximum sentence of 20 years in prison on four charges of money laundering, having already spent nearly three years in detention.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">🚨 Breaking: Crypto Crime Update: Guilty Verdict in the Bitcoin Fog Case Involving Roman Sterlingov<br><br>In a landmark case, Roman Sterlingov, a 33-year-old Swedish-Russian national, was convicted by the Department of Justice (DOJ) of laundering $336 million through Bitcoin Fog, a… <a href="https://t.co/O6vSjKcohC" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/O6vSjKcohC</a></p>— Carlo⚖️.eth (@DeFiDefenseLaw) <a href="https://twitter.com/DeFiDefenseLaw/status/1767591775177256989?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 12, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Throughout the trial, which extended over a month, the prosecution demonstrated how investigators traced cryptocurrency transactions from <a href="https://crypto.news/australian-police-seize-1-5m-in-crypto-from-dark-web-drug-dealer/" rel="noopener noreferrer nofollow">dark web</a> platforms through Bitcoin Fog. The trial also outlined a complex procedure allegedly employed by Sterlingov over a decade ago to register the Bitcoin Fog domain name.</p>
<p>Further evidence presented by the prosecution suggested Sterlingov engaged in minor transactions from an account under his name, purportedly to test Bitcoin Fog’s operations before its 2011 launch. Sterlingov admitted to using Bitcoin Fog but denied collecting any fees, contrary to the prosecution’s assertions.</p>
<p>You might also like: <a href="https://crypto.news/ftx-saga-what-happened-to-ftx/" rel="noopener noreferrer nofollow"> FTX saga: what happened to FTX and Sam Bankman-Fried in 2023 </a></p>
<h2 class="wp-block-heading" id="crypto-laundering-becomes-widespread">Crypto laundering becomes widespread</h2>
<p>Sterlingov’s case underscores the growing concern over cryptocurrency’s role in money laundering, especially through services designed to anonymize transactions. A recent report by <a href="https://www.chainalysis.com/blog/2024-crypto-crime-report-introduction/" target="_blank" rel="noopener noreferrer nofollow">Chainalysis</a> for 2024 highlights a worrying trend of increased laundering activities via crypto mixers.</p>
<p>The report sheds light on the dominant role of transactions linked to sanctioned entities, accounting for 61.5% of all tracked illicit transactions, amounting to $14.9 billion in 2023. Many of these transactions involve cryptocurrency services under sanctions by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) or are based in sanctioned jurisdictions.&nbsp;</p>
<p>Among the significant contributors to this volume was the Russia-based exchange Garantex, which was sanctioned for laundering money for ransomware attackers and other cyber criminals. The latest case again highlights the complex challenges in regulating cryptocurrency transactions globally.</p>
<p>Read more: <a href="https://crypto.news/bitcoin-new-all-time-high-73000/" rel="noopener noreferrer nofollow"> Bitcoin hits new all-time high at $73k </a></p>

Bitcoin Fog founder convicted in $400m crypto laundering case

Table of Contents

crypto.news

Other articles published on Mar 12, 2024

Will Cardano’s DEX volumes be enough for ADA’s growth?

Bitcoin Bull Run Creating Over 1,500 Millionaire Wallets Daily, Kaiko Research Says

XRP gains 22% as Bitcoin breaks ATH, but here’s what the bears are doing

Bitcoin Miners Enjoy Record Profits as Crypto Surges to $72K

Bitcoin Cash (BCH) Whale Picks DeeStream (DST) Over Frog Wif Hat (FWIF) Amid USD Coin (USDC) & Da...

Solana Price Prediction: Former Goldman Sachs Exec Sees SOL Soaring As High As $1K As This AI Mem...

Join our free newsletter for daily crypto updates!