On Friday, November 8, 2024, a federal judge sentenced Roman Sterlingov, a 36-year-old dual Russian-Swedish national, to 12 years and six months in prison for running Bitcoin Fog, the darknet’s longest-operating bitcoin money laundering service. Bitcoin Fog, operational from 2011 to 2021, processed over 1.2 million bitcoin—valued at approximately $400 million at the time—largely sourced from criminal activities, including narcotics trafficking, computer crimes, identity theft, and the distribution of child sexual abuse material.
In March 2024, following a one-month trial, a jury in the District of Columbia convicted Sterlingov of charges including money laundering conspiracy, money laundering, operating an unlicensed money transmitting business, and money transmission without a license. Alongside his prison sentence, Sterlingov was ordered to pay a forfeiture money judgment of $395,563,025.39 and to forfeit cryptocurrencies and assets valued at approximately $1.76 million, including his interest in the Bitcoin Fog wallet, currently valued at more than $103 million.
“Roman Sterlingov ran the longest-running bitcoin money laundering service on the darknet, and today he paid the price,” said Deputy Attorney General Lisa Monaco. “In the deepest corners of the internet, he provided a home for criminals of all stripes, from drug traffickers to identity thieves, to store hundreds of millions of dollars in illicit proceeds. Today’s sentence reflects the Department’s determination to dismantle the criminal networks that enable criminal actors to flourish and ensure consequences for the criminals operating them.”
“Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency ‘mixing’ service that was open for business to criminals looking to hide dirty money,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children. Today’s sentencing underscores the Justice Department’s commitment to holding those who facilitate criminal activity fully accountable for their crimes. I am especially proud of the dedicated investigators and prosecutors who worked tirelessly to unmask and prosecute the Bitcoin Fog scheme.”
“As proven at trial, Roman Sterlingov created and used an online tool to process hundreds of millions in illegal transactions, enabling darknet drug dealers and those who sell child sexual abuse material, to operate,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Today’s sentence sends an unmistakable message: those who help criminals with online payments for their illegal activities will face serious penalties. This prosecution also provides more proof that we have the skilled investigators and talented prosecutors needed to hold those who operate these darknet sites accountable.”
“Clearly, Sterlingov’s attempt to shroud his illicit activities in a cloak of anonymity ultimately failed against the sophisticated collaborative work of our Criminal Investigation special agents and partners,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “Today’s significant prison term and hundreds of millions in financial sanctions against the defendant emphasizes the seriousness of this conviction and should serve as a stark notice that this type of criminal activity will not be tolerated.”
“The prosecution of Roman Sterlingov and the sentence imposed today should serve as a warning to cybercriminals,” said Assistant Director in Charge David Sundberg of the FBI. “The FBI will not hesitate to use all tools at its disposal and will leverage our extensive partnerships to disrupt the cybercriminal ecosystem and the individuals who provide the key services that facilitate criminal activity.”
The investigation was led by the IRS-CI District of Columbia Cyber Crime Unit and FBI’s Washington Field Office, with assistance from international partners, including authorities in Japan, Sweden, Denmark, Romania, the United Kingdom, and Europol. The case was prosecuted by Trial Attorneys Jeff Pearlman and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, alongside Special Assistant U.S. Attorney Christopher B. Brown for the District of Columbia.
