Operator of Notorious Darknet Cryptocurrency “Mixer” Laundered $400M in Cryptocurrency Since 2011

According to court documents and evidence presented at trial, Roman Sterlingov, 35, was involved in operating Bitcoin Fog from 2011 through 2021. Bitcoin Fog was the longest-running cryptocurrency “mixer,” gaining notoriety as a go-to money laundering service for criminals seeking to hide their illicit proceeds from law enforcement.

Over the course of its decade-long operation, Bitcoin Fog moved over 1.2 million bitcoin, which was valued at approximately $400 million at the time of the transactions. The bulk of this cryptocurrency came from darknet marketplaces and was tied to illegal narcotics, computer crimes, identity theft, and child sexual abuse material.

The jury convicted Sterlingov of money laundering conspiracy and sting money laundering, which each carry a maximum penalty of 20 years in prison, and of operating an unlicensed money transmitting business and money transmission without a license in the District of Columbia, which each carry a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided invaluable assistance. Additional assistance was provided by Europol; the Swedish Economic Crime Authority, Swedish Prosecution Authority, and Swedish Police Authority; and the General Inspectorate of Romanian Police, Directorate for Combatting Organized Crime, and Directorate for Investigating Organized Crime and Terrorism.

Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown for the District of Columbia are prosecuting the case. Pelker and Brown are members of CCIPS’ National Cryptocurrency Enforcement Team (NCET). CCIPS Paralegal Specialist Divya Ramjee and Paralegal Specialist Angela De Falco for the District of Columbia provided valuable assistance.