The founder of Bitcoin Fog, a significant crypto-mixing service worth $400 million, was convicted of money laundering in a United States District Court on March 12. Roman Sterlingov, 35, was found guilty of various charges related to money laundering and operating an unlicensed money-transmitting business.

Sterlingov, who had maintained his innocence throughout the trial, argued that he was only a user of the service, not its operator. His attorney plans to appeal the verdict.

Bitcoin Fog, operational from 2011 to 2021, facilitated money laundering for criminals hiding illicit proceeds from law enforcement. Over the years, the service moved 1.2 million Bitcoin, valued at $400 million during the transactions, with most coming from darknet marketplaces involved in illegal activities.

Evidence presented during the trial revealed that the majority of funds in Sterlingov’s crypto exchange accounts were from Bitcoin Fog-related clusters. The Internal Revenue Service (IRS) and the Justice Department’s Criminal Division are committed to prosecuting those who use technology to conceal crimes, regardless of sophistication.

J.W. Verret, a professional witness in the case, has pledged to assist Sterlingov in his appeal, pointing out flaws in the on-chain forensics used as evidence.

The jury has ordered the forfeiture of assets seized from Bitcoin Fog, including 1,354 BTC from a wallet and nearly $350,000 in various cryptocurrencies from a Kraken account. Sterlingov faces up to 20 years in prison for the most serious charges and sentencing is scheduled for July 15.

In a related case, the co-founder of Tornado Cash, another controversial crypto mixer, is set to face trial in September on charges related to money laundering and violating laws. The co-founder has pleaded not guilty to all charges.

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