{"id":57644,"date":"2024-11-11T15:38:38","date_gmt":"2024-11-11T15:38:38","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/36580\/Dark-Web-Crypto-Laundering-Kingpin-Sentenced-To-12.5-Years-In-Prison.html"},"modified":"2024-11-11T15:38:38","modified_gmt":"2024-11-11T15:38:38","slug":"dark-web-crypto-laundering-kingpin-sentenced-to-12-5-years-in-prison","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/dark-web-crypto-laundering-kingpin-sentenced-to-12-5-years-in-prison\/","title":{"rendered":"Dark Web Crypto Laundering Kingpin Sentenced To 12.5 Years In Prison"},"content":{"rendered":"<p>The operator of the longest-running money laundering machine in dark web history, Bitcoin Fog, has been sentenced to 12 years and six months in US prison.<\/p>\n<p>Roman Sterlingov, 36, a Russian-Swedish national, was also ordered to repay more than half a billion dollars accrued from the cryptocurrency mixing service that he ran for a decade between 2011 and 2021.<\/p>\n<p>Bitcoin Fog was assessed to have processed 1.2 million Bitcoin during that time, worth roughly $400 million at the time it was shuttered. Of this, Sterlingov was ordered to repay $395,563,025.39 in restitution, forfeit roughly $1.76 million in seized assets, and relinquish control of Bitcoin Fog&#8217;s wallet containing more than $100 million in <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2024\/10\/16\/wales_bitcoin_landfill_lawsuit\/\" rel=\"noopener\">Bitcoin<\/a>.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"condor\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>He was <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2024\/03\/13\/bitcoin_fog_conviction\/\" rel=\"noopener\">found guilty<\/a> back in March, at which point he faced a maximum 50-year sentence. Prosecutors said the vast majority of Sterlingov&#8217;s wealth came from the proceeds of crime in which he and his online service helped criminals hide from law enforcement.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xmd=\",fluid,mpu,leaderboard,\" data-lg=\",fluid,mpu,leaderboard,\" data-xlg=\",fluid,billboard,superleaderboard,mpu,leaderboard,\" data-xxlg=\",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<div class=\"adun_eagle_desktop_story_wrapper\">\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"mid\" data-raptor=\"eagle\" data-xxlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<\/p><\/div>\n<p>The court heard that the crimes associated with this activity included the sale of drugs, computer misuse offenses, identity theft, and child sexual abuse material (CSAM).<\/p>\n<p>&#8220;Roman Sterlingov laundered over $400 million in criminal proceeds through Bitcoin Fog, his cryptocurrency &#8216;mixing&#8217; service that was open for business to criminals looking to hide dirty money,&#8221; said Principal Deputy Assistant Attorney General Nicole M Argentieri, head of the Justice Department&#8217;s Criminal Division.&nbsp;<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>&#8220;Through his illicit money laundering operation, Sterlingov helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children.<\/p>\n<p>&#8220;Today&#8217;s sentencing underscores the Justice Department&#8217;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.&#8221;<\/p>\n<p>There are many cryptocurrency mixers available to criminals, so the downfall of Bitcoin Fog won&#8217;t put a significant dent in their use. However, investigators will be pleased that a service as relied upon as Sterlingov&#8217;s could be scuppered and distrust sown throughout the community of criminals who use them.<\/p>\n<p>Different cryptocurrencies claim to offer varying <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2018\/03\/16\/cyber_crime_economics\/\" rel=\"noopener\">levels of anonymity<\/a>, although law enforcement agencies have become adept at tracking criminals across most of the major <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2021\/12\/06\/the_dark_equation_of_harm\/\" rel=\"noopener\">blockchains<\/a> over time.<\/p>\n<p>It&#8217;s obviously in the criminals&#8217; best interests to be as untraceable along these blockchains as possible. Mixers make investigators&#8217; jobs a great deal more difficult by pooling all users&#8217; funds together \u2013 many different crypto tokens belonging to different people \u2013 and redistributing them back to the users after taking a cut for the trouble.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" id=\"story_eagle_xsm_sm_md_xmd_lg_xlg\" data-pos=\"mid\" data-raptor=\"eagle\" data-xsm=\",mpu,dmpu,\" data-sm=\",mpu,dmpu,\" data-md=\",mpu,dmpu,\" data-xmd=\",mpu,dmpu,\" data-lg=\",mpu,dmpu,\" data-xlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/cybercrime&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33ZzJb0uCDTKSR59YS1OTo4QAAAFY&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>They&#8217;re not illegal in most places. If they&#8217;re not being abused to launder the proceeds of crime, there&#8217;s not much to attract law enforcement. That said, they are indeed widely abused, which is why action is taken to end the more popular ones.<\/p>\n<p>Legitimate uses of mixers can be found in oppressive regimes that heavily monitor payments made by citizens. Using mixers can help pay for legal goods and services more anonymously, should someone wish to do so. \u00ae<\/p>\n<p> READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/36580\/Dark-Web-Crypto-Laundering-Kingpin-Sentenced-To-12.5-Years-In-Prison.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[277],"tags":[8592],"class_list":["post-57644","post","type-post","status-publish","format-standard","hentry","category-cybersecurity-blogs","tag-headlinehackercybercrimefraudcryptography"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dark Web Crypto Laundering Kingpin Sentenced To 12.5 Years In Prison 2026 | 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