The founder of a cryptocurrency mixing platform will end up in a US prison cell and return to his home country for 12.5 years after a federal court ruled that the owner of the cryptocurrency company was guilty of money laundering.
This ruling serves as a reminder that the US government is serious about cracking down on cryptocurrency platforms used by unscrupulous individuals for their illegal activities.
Crypto Mixer founder in prison
A federal court in Washington has sentenced the founder of cryptocurrency mixing service Bitcoin Fog to be put behind bars and remain in the state Imprisonment for 12.5 years To facilitate money laundering on its platform.
Reports revealed the conviction of US District Judge Randolph Moss Bitcoin Fog founder Roman Sterlingoff Charged with laundering $400 million in criminal proceeds in what prosecutors described as “the largest and longest-running money laundering service.”
Prosecutors said the criminals used the cryptocurrency platform to launder money they obtained from illegal activities such as drugs.
Moss also ordered the 36-year-old businessman to seize his assets amounting to $395 million and interest worth more than $103 million worth of bitcoin stored in the Bitcoin Fog wallet.
Sterlinghoff expressed remorse for any harm he may have caused as a result of his actions, adding: “I am fully committed to becoming a better person.”
As of today, the market cap of cryptocurrencies stood at $2.55 trillion. Chart: TradingView
A lighter sentence
the 12 years imprisonment The punishment appears to be lighter compared to the 30-year prison sentence proposed by the US government and the maximum sentence of 50 years stipulated in the US guidelines.
Prosecutor Christopher Brown said that the US government is pushing for a more severe punishment for Sterlinghoff, explaining that the size and duration of the scheme require a more severe punishment.
“This is criminal activity on an astonishing scale over a long period of time,” Brown added.
Prosecutors also said Bitcoin Fog provided criminals with a convenient way to use money they obtained from illegal activities, some of which were drug-related.
They added that Sterlinghoff’s cryptocurrency company allowed transactions that made it difficult to trace the source of the proceeds, an ideal setup for individuals involved in criminal activities.
In a statement, Principal Deputy Assistant Attorney General Nicole M. Argentieri said that through Bitcoin Fog, the Russian-Swiss cryptocurrency entrepreneur laundered more than $400 million in criminal proceeds, arguing that Sterlinghoff’s cryptocurrency platform provided criminals with a way to hide their dirty money. .
warning
The federal judge said a life sentence appeared inconsistent with the level of guilt. However, Moss explained that the punishment should be harsh enough to deter other crypto personalities from doing the same.
On the other hand, Argentieri said that the ruling against Sterlinghoff confirms the US Department of Justice’s commitment to holding accountable individuals who assist criminals in their illegal activities.
Featured image from Serious Eats, chart from TradingView
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