Bitcoin Fog Founder Sentenced To 12.5 Years In Prison For Money Laundering Case

Bitcoin Founder Fog was sentenced to 12.5 years in prison for a money laundering case (Photo; Doc. Pakmediablog)

JAKARTA - Roman Sterlingov, founder of the Bitcoin Fog crypto mixer platform, was sentenced to 12.5 years in prison after being found guilty in a money laundering case worth up to 400 million US Dollars (Rp 6.2 trillion). The case marks that the US government is seriously cracking down on crypto companies that facilitate illegal transactions.

Bitcoin Fog, a widely known platform among crypto market players, is alleged to have operated for years as a tool to hide sources of funds from illegal crypto transactions. During a trial in Washington, US District Judge Randolph Moss sentenced Sterlingov on the grounds that Bitcoin Fog has been one of the largest money laundering services operating for a long time, making billions of crypto transactions difficult for authorities to track.

Quoted from Bitcoinist, according to prosecutors, Bitcoin Fog facilitates illicit transactions, especially those originating from narcotics trafficking, which is difficult to track. This platform serves as a mixer or crypto "filling" tool, which bickers transactions to hide the origins of funds. This service, which is accused of making it easier for criminals to launder funds resulting from illegal activities, has become popular among cybercriminals and illicit trade.

Sterlingov was found guilty of money laundering of around 400 million US Dollars during the Bitcoin Fog operating period, as well as owning personal assets worth 395 million US Dollars (Rp 6.18 trillion) and Bitcoin deposits that amounted to more than 103 million US Dollars (Rp1.6 trillion) which were also ordered to be confiscated by the court.

Sentences of 12.5 years in prison are considered relatively light compared to demands by prosecutors who want harsher sentences. According to Christopher Brown, state prosecutor, the length of operation and the magnitude of the scale of crimes committed by Bitcoin Fog require higher sentences as a form of deterrence. The government even proposed a sentence of 30 years, while US legal guidelines provide a maximum limit of 50 years in prison for similar cases.

Brown stated that services such as Bitcoin Fog are a tool that makes it easier for criminals to take advantage of money from illegal activities, making it almost impossible for law enforcement officials to track down the source of the money.

Although heavier demands were filed, Judge Moss ruled that the life sentence did not match Sterlingov's level of error. However, he stressed that punishment should be severe enough to serve as a warning to other parties who might try to operate similar services in the future. It aims to prevent the circulation of illegal money through platforms that should support positive innovation in the crypto world.