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A US federal judge has sentenced Roman Sterlingov, the founder of Bitcoin Fog, to 12.5 years in prison for money laundering linked to darknet markets, the Department of Justice announced.
Alongside his prison term, Sterlingov must forfeit $395 million and the funds in a Bitcoin Fog wallet valued at over $103 million. This decision has sparked significant debate within the crypto community, especially around issues of privacy and government oversight.
The prosecutors initially sought a 30-year sentence, arguing that Sterlingov perjured himself by denying involvement with Bitcoin Fog. However, Sterlingov maintained in court that he was merely a user and not the operator.
His attorney, Tor Ekeland, pointed out a lack of direct evidence. The lawyer argued that the authority lacked eyewitness accounts or platform logs to support their position of his control over the mixing service.
Despite the defense’s arguments, prosecutors alleged that Bitcoin Fog had facilitated hundreds of millions in untraceable transactions. Many of these transactions were reportedly connected to illicit activities on darknet marketplaces.
Records from the case suggest that from 2011 to 2021, Bitcoin Fog became a preferred service for individuals looking to obfuscate transactions linked to illegal operations, handling over 1.2 million Bitcoin — an amount valued at roughly $400 million at the time.
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, also stated that Sterlingov’s actions allowed criminals to launder funds from a wide array of offenses, including drug trafficking, identity theft, and child exploitation. She emphasized that the Justice Department remains committed to holding those who enable criminal activity fully accountable.
The US government’s ongoing scrutiny of privacy-oriented protocols, including Tornado Cash, has raised questions among privacy advocates and industry insiders. Crypto commentator L0la L33tz voiced strong disapproval of the recent verdict. They assert that Sterlingov’s case is an unjust move in the government’s “war on financial privacy.”
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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The post Bitcoin Fog Founder Sentenced to Over a Decade in Prison appeared first on Panther AI.
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Alongside his prison term, Sterlingov must forfeit $395 million and the funds in a Bitcoin Fog wallet valued at over $103 million. This decision has sparked significant debate within the crypto community, especially around issues of privacy and government oversight.
Privacy Advocates React to Bitcoin Fog Founder’s Sentence and Forfeiture
The prosecutors initially sought a 30-year sentence, arguing that Sterlingov perjured himself by denying involvement with Bitcoin Fog. However, Sterlingov maintained in court that he was merely a user and not the operator.
His attorney, Tor Ekeland, pointed out a lack of direct evidence. The lawyer argued that the authority lacked eyewitness accounts or platform logs to support their position of his control over the mixing service.
Despite the defense’s arguments, prosecutors alleged that Bitcoin Fog had facilitated hundreds of millions in untraceable transactions. Many of these transactions were reportedly connected to illicit activities on darknet marketplaces.
Records from the case suggest that from 2011 to 2021, Bitcoin Fog became a preferred service for individuals looking to obfuscate transactions linked to illegal operations, handling over 1.2 million Bitcoin — an amount valued at roughly $400 million at the time.
Nicole M. Argentieri, Principal Deputy Assistant Attorney General, also stated that Sterlingov’s actions allowed criminals to launder funds from a wide array of offenses, including drug trafficking, identity theft, and child exploitation. She emphasized that the Justice Department remains committed to holding those who enable criminal activity fully accountable.
The US government’s ongoing scrutiny of privacy-oriented protocols, including Tornado Cash, has raised questions among privacy advocates and industry insiders. Crypto commentator L0la L33tz voiced strong disapproval of the recent verdict. They assert that Sterlingov’s case is an unjust move in the government’s “war on financial privacy.”
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source link
The post Bitcoin Fog Founder Sentenced to Over a Decade in Prison appeared first on Panther AI.
Continue reading...