The founder of a crypto-mixing platform will spend 12.5 years in a US prison cell after a federal judge concluded that the crypto firm’s owner was guilty of money laundering.
The punishment serves as a warning that the US government is serious about cracking down on cryptocurrency networks used by unscrupulous individuals for criminal operations.
Crypto Mixer Founder Jail-Bound
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A Washington federal court sentenced the founder of the cryptocurrency mixing service Bitcoin Fog to 12.5 years in state jail for assisting money laundering through his platform.
According to reports, US District Judge Randolph Moss convicted Bitcoin Fog founder Roman Sterlingov of laundering $400 million in illegal proceeds through what state prosecutors described as one of the “largest and longest-running money laundering services.”
The authorities claimed that criminals utilized the cryptocurrency network to launder money obtained through unlawful activities like as narcotics.
Moss also ordered the 36-year-old entrepreneur to sequester his $395 million assets and interest, which totaled more than $103 million in bitcoins housed in a Bitcoin Fog wallet.
Sterlingov expressed regret for any harm his actions may have caused and declared, “I’m fully committed to becoming a better person.”
A Lighter Sentence
The 12-year prison sentence appears to be less severe when compared to the 30-year term proposed by the US government and the maximum 50-year sentence outlined in the US guidelines.
According to state prosecutor Christopher Brown, the US government is advocating for a stricter penalty for Sterlingov. Brown highlights that the magnitude and longevity of the scheme necessitate a more severe sentence.
“This is criminal activity of a staggering scale over a prolonged period of time,” Brown added.
State prosecutors have also highlighted that Bitcoin Fog provided criminals with a convenient avenue to launder the proceeds of their illicit activities, including drug-related offenses.
According to the experts, Sterlingov’s cryptocurrency company facilitated transactions that posed challenges in tracing the origin of the funds, making it an attractive option for individuals engaged in criminal activities.
Principal Deputy Assistant Attorney General Nicole M. Argentieri stated that Bitcoin Fog facilitated the laundering of over $400 million in criminal proceeds by the Russian Swiss crypto entrepreneur. Argentieri argued that Sterlingov’s cryptocurrency platform served as a means for criminals to conceal their illicit funds.
A Warning
Argentieri emphasized the significance of Sterlingov’s sentence, as it demonstrates the unwavering dedication of the US Department of Justice to holding individuals responsible for their involvement in aiding criminals in their illicit endeavors.
The federal judge stated that a life sentence appears inconsistent with the level of culpability. However, Moss stated that the penalty must be severe enough to prevent other crypto personalities from doing the same.
