The founder of a crypto mixing platform will end up in a US prison cell and call it his home for 12.5 years after a federal court ruled that the crypto company owner was guilty of money laundering.
The sentence reminds us that the US government is serious about cracking down on cryptocurrency platforms used by unscrupulous individuals in their illegal activities.
Founder of Crypto Mixer is in jail
A federal court in Washington has sentenced the founder of cryptocurrency mixing service Bitcoin Fog to behind bars and residency in a state prison sentence of 12.5 years for facilitating money laundering on its platform.
Reports have indicated that U.S. District Judge Randolph Moss has been convicted Bitcoin Fog founder Roman Sterlingov for laundering $400 million in criminal proceeds from what prosecutors called one of the “largest and longest-running money laundering schemes.”
Prosecutors said criminals used the crypto platform to launder the money they got from illegal activities such as narcotics.
Moss also ordered the 36-year-old entrepreneur to seize his $395 million assets and interest, worth more than $103 million worth of Bitcoin stored in a Bitcoin Fog wallet.
Sterlingov expressed regret for the damage he may have caused as a result of his actions, adding: “I am completely committed to becoming a better person.”
As of today, the market cap of cryptocurrencies stood at $2.55 trillion. Chart: TradingView
A lighter sentence
The 12 years in prison appears to be a lighter sentence compared to the 30-year prison sentence proposed by the US government and the maximum 50-year sentence set by US guidelines.
Prosecutor Christopher Brown said the U.S. government is pushing for a harsher sentence for Sterlingov, explaining that the scope and duration of the scheme require a harsher sentence.
“This is criminal activity of staggering proportions over an extended period of time,” Brown added.
Prosecutors also said Bitcoin Fog provided criminals with an easy way to use the money they obtained from illegal activities, some of which are drug-related.
They added that Sterlingov’s crypto firm allowed transactions that made it difficult to trace the source of the proceeds, an ideal setup for those involved in criminal activity.
In a statement, Deputy Assistant Attorney General Nicole M. Argentieri said the Russian-Swiss crypto entrepreneur laundered more than $400 million in criminal proceeds through Bitcoin Fog, arguing that Sterlingov’s cryptocurrency platform provided a medium for criminals to hide their dirty money.
A warning
The federal judge said a life sentence appears inconsistent with the degree of guilt. However, Moss explained that the punishment must be severe enough to deter other crypto personalities from doing the same.
Meanwhile, Argentieri said Sterlingov’s sentence affirms the U.S. Department of Justice’s commitment to holding individuals accountable for assisting criminals in their illegal activities.
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