- Roman Sterlingov is facing a potential 30-year prison sentence for BTC Fog’s money laundering charges.
- Sterlingov’s lawyers argue that the recommended sentence is excessive compared to similar cases.
Roman Sterlingov, the founder of Bitcoin Fog, a cryptocurrency mixer is challenging a potential 30-year prison sentence. It was followed by his conviction on multiple money laundering charges. In an August 15 filing with the U.S. District Court for the District of Columbia, Sterlingov’s legal team argued that the recommended sentence is excessive compared to penalties in similar cases.
In March, Sterlingov was convicted of money laundering and running an unlicensed money-transmitting business. He also violated the D.C. Money Transmitters Act. Prosecutors claimed Bitcoin Fog, run by Sterlingov from 2011 to 2021, laundered about $400 million in BTC tied to illegal activities.
Moreover, in their defense, Sterlingov’s lawyers argued that the 20 to 30-year sentence recommended by prosecutors is disproportionate. The defense claimed the evidence was mostly circumstantial and lacked key elements. Further, arguing Sterlingov’s role was more about aiding and abetting than directly running Bitcoin Fog.
Judge Randolph Daniel Moss, who is overseeing the case, had initially scheduled Sterlingov’s sentencing for August 21. The court will first address the seizure of Bitcoin Fog assets, including 1,354 inactive BTCs since 2012. They will also consider a potential $395 million financial judgment.
Nicole M. Argentieri, Assistant Attorney General of the Justice Department’s Criminal Division said:
“As the jury’s guilty verdict shows, that belief was mistaken. The Criminal Division is committed to unmasking and prosecuting those who use technology to hide their crimes, no matter how sophisticated the scheme may be.”
Sterlingov’s Case Highlights Crypto Sentencing Issues
Sterlingov’s case echoes similar legal battles faced by other figures in the cryptocurrency world, like Tornado Cash co-founder Roman Storm, who is set for trial in December. The defense’s filing stresses that the recommended sentence does not reflect Sterlingov’s actual involvement and that the sentencing guidelines, focused heavily on the dollar amounts, do not accurately capture his culpability.
Finally, this case highlights ongoing challenges in prosecuting complex financial crimes involving cryptocurrency, with authorities striving to balance justice with fairness in sentencing.
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