Crypto mixer Bitcoin Fog operator convicted of money laundering: Bloomberg News

The operator of crypto mixer Bitcoin Fog was convicted of helping to launder millions of dollars from darknet markets known for selling illegal drugs on Tuesday. 

According to Bloomberg, a jury in a Washington federal court found Roman Sterlingov, 35, guilty on all four counts on Tuesday after two days of deliberations.

Sterlingov was first charged with money laundering and operating an illegal money transmission service back in 2021. The government said hundreds of millions of dollars had entered Bitcoin Fog, of which $78 million was from known darknet markets. 

Sterlingov, who denied he ran Bitcoin Fog, faces up to 20 years in prison. During the trial, the government had other crypto criminals testify, including Ilya Lichtenstein and Larry Harmon, according to Bloomberg. Lichtenstein pleaded guilty to money laundering conspiracy charges in connection with the 2016 hacking of crypto trading platform Bitfinex last year. Harmon admitted to running bitcoin mixing service Helix and pleaded guilty to money laundering in 2021. 

Sterlingov says he wasn't behind Bitcoin Fog

On the witness stand Sterlingov told the court he didn't remember whether he created the Bitcoin Fog domain name and doubted that he had done so. His lawyer also said that there was no evidence that Sterlingov operated Bitcoin Fog, according to Bloomberg.  

Crypto mixers have come under scrutiny over the past few years from lawmakers and the U.S. government. The Treasury Department's Office of Foreign Assets Control has sanctioned a few virtual currency mixers over the years, including Tornado Cash and Sinbad. In Washington, some lawmakers have said they are concerned about crypto mixers and how tracing money flowing through them can be difficult.