Sterlingov’s Bitcoin Fog completed nearly 1.2 million Bitcoin transactions worth $400 million between 2011 and 2021. Most of these transactions were from dark web markets and included drug trafficking, computer crimes, identity theft, and child sexual abuse.
A jury convicted Sterlingov guilty of money laundering conspiracy, money laundering, running an unauthorized money transmitting company, and money transmission without a license in the District of Columbia in March 2024, ending his enterprise.
The IRS-CI District of Columbia Cyber Crime Unit and FBI Washington Field Office spearheaded the investigation alongside foreign authorities from Japan, Sweden, Denmark, Romania, the UK, and Europol.
Sterlingov must pay a forfeiture money judgment of $395,563,025.39 ($395.56 million) and forfeit confiscated cryptocurrency and monetary assets worth $1.76 million in addition to his jail term. He will also lose his stake in the Bitcoin Fog wallet, which has 1,345 Bitcoins worth over $103 million.
This case shows that law enforcement can now monitor and punish cryptocurrency-based money laundering, even as hackers and money launderers grow more adept at anonymization.
