Bitcoin Fog Founder Sentenced to 12 Years in Prison Amid DOJ’s Crypto Mixers Crackdown

Roman Sterlingov, founder of Bitcoin Fog, one of the darknet’s oldest crypto mixers, has been sentenced to 12.5 years in federal prison. This sentencing is part of the U.S. government’s intensified efforts to tackle crypto mixers, often associated with obscuring the origins of cryptocurrency transactions.

Bitcoin Fog Labeled a Criminal Hub

Sterlingov’s punishment is notably shorter than the 20- to 30-year sentence initially sought by prosecutors. However, his conviction on multiple charges—including money laundering, conspiracy, and operating an unlicensed money-transmitting business—sends a strong warning to those attempting to hide illicit funds via similar platforms.

According to the Department of Justice (DOJ), Bitcoin Fog, which operated for nearly a decade, became a preferred money-laundering channel among criminals. The DOJ claims the service handled transactions involving over 1.2 million BTC, worth an estimated $400 million at the time, providing an avenue for illegal gains to elude law enforcement.

Notably, Sterlingov has also been ordered to pay a forfeiture judgment of $395 million and to forfeit approximately $1.76 million in crypto and funds seized by the government.

A Divisive Case in the Crypto Community

Throughout his trial, Sterlingov argued that he was merely a user of the crypto mixer and not the operator, a claim that some in the crypto community supported. Crime commentator L0la L33tz voiced concerns on X, calling the case “a grave miscarriage of justice” and labeling it part of a broader “war on financial privacy” by the U.S. government.

L33tz further commented that the government seized Sterlingov’s remaining Bitcoin holdings while the supposed billions he earned remain unaccounted for, suggesting gaps in the DOJ’s argument.

However, others believe the sentence serves as a necessary deterrent. Mario Nawfal’s crypto-focused program, Roundtable, echoed this sentiment, stating:

“This isn’t just a slap on the wrist—it’s a message to mixers: play shady, pay heavy.”

Broader Push Against Crypto Mixers

The U.S. government’s crackdown on crypto mixers has intensified recently, with legal actions against prominent figures in the sector. Roman Storm, co-founder of the well-known Tornado Cash mixer, faces his trial in 2025 on charges of money laundering and violating sanctions.

Similar cases are unfolding, such as that of Keonne Rodriguez, linked to the crypto mixer Samourai Wallet, who pleaded not guilty to money laundering charges earlier this year.