Security News > 2024 > March > Cryptocurrency laundryman gets hung out to dry

The operator of the world's longest-running Bitcoin money laundering service faces a 50-year prison sentence after being found guilty in a US court.

According to the Department of Justice, law enforcement previously seized 1,354 Bitcoin that was held in a Bitcoin Fog wallet along with $349,625 in other tokens from the Kraken crypto exchange.

Dark web marketplaces themselves were direct customers too, offering these so-called mixing services through their platforms, but relying on Bitcoin Fog.

"Our team of agents, analysts, and prosecutors were relentless in their pursuit of justice, painstakingly tracing Bitcoin through the blockchain to hold Sterlingov and his Bitcoin Fog enterprise to account. Today, a jury returned guilty verdicts on all counts - showing that no matter where you operate, if your cryptocurrency service reaches the United States, you must abide by US law."

Mixing services have been in operation for many years and others like Bitcoin Fog continue to operate today.

Mixing services such as Bitcoin Fog made the process much more difficult.

News URL

https://go.theregister.com/feed/www.theregister.com/2024/03/13/bitcoin_fog_conviction/