Roman Sterlingov, the founder of the cryptocurrency mixing service Bitcoin Fog, is seeking a reduced sentence after being convicted of money laundering and related charges. In a recent filing with the U.S. District Court for the District of Columbia, Sterlingov’s legal team argued that the government’s proposed sentence of 20 to 30 years in prison is disproportionately harsh, especially when compared to similar cases within the digital currency sphere.
A Call for Fairness in Sentencing
On August 15, Sterlingov’s defense attorneys submitted a formal request for leniency, emphasizing that the length of the sentence recommended by prosecutors far exceeds what is typical in comparable cases. The defense argues that such a lengthy prison term would be unjust, particularly given the nature of the evidence that led to Sterlingov’s conviction.
Roman Sterlingov, a citizen of Russia and Sweden, was found guilty in March 2024 of multiple charges, including money laundering, conspiracy, and operating an unlicensed money transmission business. Prosecutors allege that Bitcoin Fog facilitated the laundering of approximately $400 million worth of Bitcoin tied to illegal activities, ranging from drug trafficking to identity theft, over a decade-long period between 2011 and 2021.
Circumstantial Evidence and Questions of Control
A critical aspect of Sterlingov’s defense revolves around the nature of the evidence presented against him. The defense team has pointed out that much of the evidence is circumstantial, lacking direct proof that Sterlingov had operational control over Bitcoin Fog. They argue that the prosecution failed to produce definitive evidence, such as server logs or private keys, that would unequivocally tie Sterlingov to the daily management of the mixing service.
According to Sterlingov’s attorneys, this lack of concrete evidence should weigh heavily in favor of a lighter sentence. The defense also highlighted Sterlingov’s personal background, noting his dedication to his family and his positive contributions to his community as factors that should be considered during sentencing.
Delays and Asset Forfeiture Complications
Adding to the complexity of Sterlingov’s case, his sentencing has been delayed to address unresolved issues related to asset forfeiture. Specifically, the court must determine the fate of over 1,300 Bitcoin stored in a wallet allegedly connected to Bitcoin Fog. The resolution of these asset forfeiture questions could have significant financial implications, not only for Sterlingov but also for ongoing efforts to recover funds linked to illicit activities.
The outcome of this case will likely have a lasting impact on how courts handle similar cases in the future, particularly as the legal system continues to adapt to the unique challenges posed by digital currencies and decentralized platforms.
