Russian-Swedish native Roman Sterlingov has been sentenced to twelve years in prison for his alleged involvement in Bitcoin Fog, the longest-running cryptocurrency laundering service on the dark web. Sterlingov reportedly operated Bitcoin Fog for a decade and processed over 1.2 million Bitcoin, valued at approximately $400 million at the time of the transactions.
Bitcoin Fog ran from 2011-2021 and quickly garnered a reputation among the dark web community as the “go-to” cryptocurrency “mixer” for cybercriminals looking to hide their illicit funds from law enforcement. Bitcoin Fog would pool the “dirty” cryptocurrency and redistribute it in order to make the funds untraceable. According to court documents, the cryptocurrency laundered was mainly derived from darknet marketplaces tied to illegal narcotics, identity theft, and child sexual abuse material.
Sterlingov was first convicted in March 2024 by a federal jury in Washington, D.C. US Deputy Attorney General Lisa Monaco states they “painstakingly [traced] bitcoin through the blockchain to hold Sterlingov and his Bitcoin Fog enterprise to account.” Aside from his 12-year sentence, Sterlingov is also sentenced to pay a forfeiture money judgment of $395 million. Sterlingov’s e-wallet and monetary assets were also seized, valued at over $104 million in total.
Chinese National arrested for laundering millions in “pig butchering” scheme
In similar news, Chinese national Daren Li has pled guilty to his involvement in a scheme to launder hundreds of millions of dollars from cryptocurrency investment scams.
Li has admitted to conspiring to launder funds from victims in a cryptocurrency investment scheme known as “pig butchering,” a rising investment scheme where scammers take on a fake persona in order to lure victims into fraudulent investments. The term comes from the cybercriminal’s practice of “fattening up” the victim with trust and rapport, before “slaughtering them” and taking their money.
Li admitted to allegedly receiving over $73 million in victim’s proceeds through several US bank accounts tied to shell companies. The money was then reportedly laundered through bank accounts in the Bahamas and then converted into the cryptocurrency Tether. According to law enforcement, a cryptocurrency wallet also reportedly involved in the scheme received over $341 million in cryptocurrency.
Li was first arrested in April 2024, and according to US Attorney General Nicole Argentieri, “although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department.”
The Department of Justice warned investors to “be diligent and on guard against anyone offering them quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.”
