The 36-year-old founder of crypto mixing service, Bitcoin Fog, has been sentenced to 12 years and six months in prisonfor facilitating money laundering between 2011 and 2021.
Russian-Swedish Roman Sterlingov pleaded guilty in March.
The US Department of Justice (DoJ) has described Bitcoin Fog as the darknet 's longest-running crypto mixing service , allowing cybercriminals to conceal the source of their illicit proceeds.
See also: US: Money laundering charges against Russians
According to authorities, Bitcoin Fog enabled transactions of over 1.2 million bitcoins, worth approximately $400 million (at the time the transactions took place).
«The bulk of this crypto came from darknet and was linked to illegal drugs, computer crimes, identity theft, and child sexual abuse material.».
In addition to the prison sentence, Sterlingov will have to pay $395.56 million in restitution, while crypto and cash worth about $1.76 million have been seized. He will also lose his stake in the Bitcoin Fog wallet, which currently holds 1,345 bitcoins ($103 million).
See also: USA: Sanctions on crypto exchange services Cryptex and PM2BTC for money laundering
"Roman Sterlingov laundered more than $400 million related to criminal activities through Bitcoin Fog, the crypto mixing service that helped criminals hide dirty money," said the head of the US Department of Justice's Criminal Division.
Money laundering
Preventing this malicious activity requires a multi-layered approach. First, it is important to have a stable and effective legal framework to address the issue. This includes establishing laws and regulations that prohibit money laundering and provide for severe penalties for violators
Additionally, banks and other financial institutions must have control and monitoring systems in place to identify and report suspicious transactions. This may include training staff and implementing technologies that can help detect suspicious activity.
See also: Russian arrested for money laundering – He was helping the Lazarus hackers
International cooperation is also crucial to preventing money laundering. Countries must work together to share information and enforce their laws internationally. International organizations can also play an important role in promoting best practices and providing technical assistance.
Finally, public information and awareness is another important factor. Citizens need to be aware of techniques and their impact on society, so that they can recognize and report any suspicious behavior.
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Source: thehackernews.com
