In a definitive move against cryptocurrency-enabled crime, the 36-year-old founder of Bitcoin Fog, Roman Sterlingov, has received a 12-year and six-month prison sentence for facilitating money laundering activities from 2011 to 2021. Sterlingov, a Russian-Swedish dual national, had earlier pleaded guilty to money laundering and operating an unlicensed money-transmitting business.
DoJ’s Strong Stance on Darknet Criminality
The U.S. Department of Justice (DoJ) highlighted Bitcoin Fog as the darknet’s longest-running cryptocurrency mixer, enabling cybercriminals to obscure the origin of their illicit crypto gains. The platform processed over 1.2 million bitcoin—worth about $400 million at the time—mostly sourced from darknet marketplaces dealing in narcotics, identity theft, and child exploitation.
"Over a decade, Bitcoin Fog became infamous as a primary hub for money laundering, concealing massive amounts of illegal profits from law enforcement," the DoJ stated.
Significant Forfeitures and Penalties
In addition to his prison sentence, Sterlingov faces substantial asset forfeitures. He must surrender $395.56 million, seized cryptocurrencies, and assets valued at about $1.76 million. The court also ordered him to forfeit his interest in the Bitcoin Fog wallet, currently holding 1,345 bitcoin ($103 million).
According to Nicole M. Argentieri, Principal Deputy Assistant Attorney General, “Sterlingov laundered over $400 million through his Bitcoin Fog service, providing criminals an open channel to hide dirty money linked to drug trafficking, cybercrime, identity theft, and child exploitation.”
Major Cyber Fraud Sentences: DoJ Cracks Down on Global Cybercrime
This sentencing follows several recent high-profile cybercrime convictions. Just a day earlier, the DoJ sentenced 33-year-old Nigerian national Babatunde Francis Ayeni to 10 years in federal prison for a massive cyber fraud scheme targeting real estate transactions in the U.S., affecting over 400 victims and causing losses of nearly $20 million.
Ayeni was part of a sophisticated business email compromise (BEC) scheme, where 231 victims suffered irreversible wire losses totaling $19,599,969.
Rising Cases of Cyber Fraud and Hacktivism
Also, last week, the DoJ sentenced Kolade Akinwale Ojelade, a 34-year-old Nigerian, to over 26 years for a $12 million fraud operation. Through phishing and spoofing tactics, Ojelade intercepted real estate payments by monitoring email transactions, redirecting large sums to accounts under his control.
On the global front, the Nigerian Police Force recently arrested 130 individuals, including 113 foreign nationals and 17 Nigerian suspects, for high-level cybercrimes threatening national security.
A Message to Cybercriminals
These sentences send a clear, unmistakable message to cybercriminals worldwide: the DoJ is relentless in targeting and dismantling cybercrime operations. With record-breaking penalties and rigorous prison sentences, authorities are ensuring cybercriminals face swift and certain consequences.