Roman Sterlingov, founder of Bitcoin Fog, is appealing a potential 30-year prison sentence after his conviction for money laundering.
Excessive Sentence Challenged
On August 15, Sterlingov’s legal team filed an appeal with the United States District Court for the District of Columbia. They argue that the proposed 30-year sentence is excessive and does not align with similar cases.
While Sterlingov’s lawyers did not suggest a specific alternative sentence, they believe that a 20 to 30-year term is unjustified. They claim that the recommended sentence is harsher than those given in comparable cases.
Sterlingov Convicted of Multiple Offenses
In March, Sterlingov was convicted of money laundering, conspiracy, operating an unlicensed money transmitting business, and transmitting money without a license in Washington, D.C.
Prosecutors allege that from 2011 to 2021, Sterlingov ran Bitcoin Fog, which laundered about $400 million in Bitcoin linked to illegal activities, including drug trafficking and computer fraud.
Sterlingov’s defense disputes his involvement, stating that while he was connected to Bitcoin Fog, he was not responsible for its operations. They argue that much of the trial evidence was circumstantial. Key evidence, such as the Bitcoin Fog server and logs, was not presented in court.
Defense Highlights Sterlingov’s Personal History
The defense also emphasized Sterlingov’s personal history, arguing that his commitment to family and friends should warrant a reduced sentence. They contend that his role was more about aiding and abetting rather than direct operation of Bitcoin Fog.
Judge Randolph Moss initially set Sterlingov’s sentencing for August 21 but decided to first address the government’s forfeiture order. This includes assets like 1,354 BTC in a Bitcoin Fog wallet, untouched since 2012, and a potential $395 million judgment.
Tornado Cash Sees Over $1.8 Billion in Deposits in H1 2024
Tornado Cash, a crypto mixing protocol, has seen a surge in 2024. Deposits exceeded $1.8 billion in the first half of the year.
Surge in Funds from Hackers
This represents a 45% increase from the total deposits in 2023. Recently, the platform has received a large influx of funds from hackers involved in major thefts.
The Poloniex exchange heist, which stole over $100 million last year, saw $76 million transferred to Tornado Cash in the past two months, according to Arkham Intelligence. Additionally, hackers from the HECO Bridge and Orbit Chain moved $166 million and $47.7 million to the mixer this year.
Tornado Cash and Sanctions
In August 2022, the US Treasury sanctioned Tornado Cash for laundering over $455 million stolen by North Korea-affiliated group Lazarus. After the sanctions, monthly deposits dropped by over 90%.
The decentralized nature of Tornado Cash makes it challenging for US authorities to monitor its usage effectively.
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