Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

SEC Chair Atkins Reflects on Hester Peirce’s Legacy

08/10/2026

Binance now lets users turn stocks into on-chain tokens

08/10/2026

Bitcoin Price Pounds the $87K Wall as Bulls Refuse to Back Down

08/10/2026
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    Bitcoin Price Pounds the $87K Wall as Bulls Refuse to Back Down

    08/10/2026

    Old Major Market Brings Artisanal Meats to 48 States

    08/10/2026

    Why a Bond Market Crisis Could Send Bitcoin Above $100K: Fundstrat

    08/10/2026

    Whales Buying, Options Active! Is the Next Target $100,000? Here Are the Details

    08/10/2026

    The shrinking economics of Ethereum layer 2s

    08/10/2026

    Could this support trigger a $3,000 comeback?

    08/10/2026

    Ethereum price eyes $2,800 as analysts await range breakout

    07/10/2026

    Grayscale Celebrates One Year of $33.5M in Ethereum Staking

    07/10/2026

    Aptos unveils MonoMove, a 55x faster engine for onchain markets

    08/10/2026

    Solana Foundation Executive Reveals Priorities

    08/10/2026

    XRP Ledger Overtakes Ethereum as Leader in Tokenizing Commodities

    08/10/2026

    Circle’s new USDC ambassador? DJ Khaled

    08/10/2026

    Flying Tulip’s NFT Options Market Tops $5 Million in Volume, Cronje Says

    06/10/2026

    NFT sales fall 23% to $40.9m as Panini jumps 557%

    03/10/2026

    Justin Bieber’s $1.3 Billion Bored Ape NFT is Worthless—Blockstream CEO

    28/09/2026

    The NFT party is over and everybody now owes storage rent

    27/09/2026

    SEC Chair Atkins Reflects on Hester Peirce’s Legacy

    08/10/2026

    Binance now lets users turn stocks into on-chain tokens

    08/10/2026

    Bitcoin Price Pounds the $87K Wall as Bulls Refuse to Back Down

    08/10/2026

    Strive CEO Says ASST Can Outrun Strategy in the Next Bitcoin Bull Market

    08/10/2026
  • Blockchain

    Trevor Serpin of Ethos Network Talks Credibility in Crypto

    08/10/2026

    Pyth Network Announces AI Integration for Financial Research

    08/10/2026

    Cosmos and Hypernative Labs Discuss Cybersecurity Controls

    08/10/2026

    zkSync to Lead Conversations on Digital Assets at Chicago

    08/10/2026

    Metallicus CEO Delivers on Elon Musk’s Dogecoin Vision

    08/10/2026
  • DeFi

    Peter Thiel-backed Founders Fund leads a $5 million token buy in crypto collateral protocol Anvil

    07/10/2026

    Firelight Begins Writing DeFi Cover Backed By Staked XRP

    07/10/2026

    Tether Issues Tokenized Gold Deposits in DeFi

    07/10/2026

    Vault Curation Now Powered by Wintermute’s Liquidity

    06/10/2026

    xStocks on XLayerOfficial Reach $2B in Volume, Reports Uniswap

    06/10/2026
  • Metaverse

    Is Solana Gaming Back? Kintara Activity Fuels Renewed Optimism in Onchain MMOs

    24/06/2026

    The Sandbox launches AI game engine ‘The Sandbox Studio’ for next-generation creators

    10/06/2026

    Meta commits $13M in funding for Oversight Board through 2028

    29/05/2026

    Why Animoca’s Yat Siu says the future is 100 billion AI agents

    07/05/2026

    ‘8,000 Jobs’—Polymarket Sees Tech Layoff Surge As Meta AI Push Bites

    18/04/2026
  • Regulation

    Strive CEO Says ASST Can Outrun Strategy in the Next Bitcoin Bull Market

    08/10/2026

    How Trump’s $5K payout promise can become crypto’s next liquidity shock

    08/10/2026

    Bitcoin treasury Strive risks cash reserve to fund $500M buyback and trim dividends

    08/10/2026

    Rain seeks US trust bank charter days after OCC sued over crypto charters

    08/10/2026

    KuCoin Confirms SEC Greenlight for 3x Bitcoin and Ether ETPs

    08/10/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Binance now lets users turn stocks into on-chain tokens

    08/10/2026

    FTX, USD1 and Trump Ties

    08/10/2026

    Cardano Founder Has These Two Words for Gemini

    08/10/2026

    Tanzanian Tour Operator Accepts Bitcoin for Safaris and Treks

    08/10/2026

    ICO market slows sharply with only six completions in 2026

    30/04/2026

    South Korea Poised to Lift Ban on Domestic ICOs After 7 Years

    19/12/2025

    Why 2025’s Token Boom Looks Both Familiar and Dangerous

    31/10/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Top 12 NFT games every player should know about in August 2026

    19/08/2026

    GameShame Studios founder details Raijin Protocol’s roadmap in NeoPod’s sixth AMA

    13/08/2026

    How BC.GAME is turning players into stakeholders

    04/08/2026

    YGG Play Shuts Down Services as Yield Guild Pivots to AI Data

    01/08/2026

    BTC mining stocks fall from 2026 peaks amid booming AI narrative

    08/10/2026

    3 countries control 66% of Bitcoin mining, but 1 rival is gaining

    07/10/2026

    $1.5 Billion in Hardware Behind the AI Pivot

    04/10/2026

    Bitcoin Miners Bank Strong September as Difficulty Barely Budges

    04/10/2026

    SEC Chair Atkins Reflects on Hester Peirce’s Legacy

    08/10/2026

    Minecraft, Candy Crush Among 11 Games in EU Virtual Currency Crackdown

    08/10/2026

    America at a crossroads: Commissioner Peirce’s parting challenge

    08/10/2026

    Possible next crypto czar, Jay Clayton, began crypto’s regulation-by-enforcement at SEC

    08/10/2026

    SEC Chair Atkins Reflects on Hester Peirce’s Legacy

    08/10/2026

    Binance now lets users turn stocks into on-chain tokens

    08/10/2026

    Bitcoin Price Pounds the $87K Wall as Bulls Refuse to Back Down

    08/10/2026

    Strive CEO Says ASST Can Outrun Strategy in the Next Bitcoin Bull Market

    08/10/2026
  • MarketCap
NBTC News
Home»Legal»How a Bitcoin Mixer Laundering Conviction Might Be Appealed
Legal

How a Bitcoin Mixer Laundering Conviction Might Be Appealed

NBTCBy NBTC14/03/2024No Comments7 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


On perhaps the first spring day of the year in Washington D.C, after spending three years in federal holding, on Tuesday Russian-Swedish national Roman Sterlingov was convicted of four charges related to running the no-longer operational bitcoin (BTC) mixing service Bitcoin Fog. Sentencing is set for July 15, and he faces decades in prison for crimes related to money laundering and unregistered money transmitting.

This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You can subscribe to get the full newsletter here.

Tor Ekeland, a known entity when it comes to the criminal defense of supposed computer criminals, told CoinDesk in a phone interview the defense intends to appeal the decision. The main issue is a matter of jurisdiction; up until Sterlingov’s arrest in Los Angeles in April of 2021, the defendant hadn’t stepped foot in the U.S.

It’s a strategy Ekeland employed in his first major win against the government — defending “Nazi troll” Andrew “Weev” Auernheimer, charged with violating the Computer Fraud and Abuse Act after he exposed a massive security flaw in AT&T’s website. Ekeland won on appeal after the court found the venue, the state of New Jersey, had no connection to Auernheimer or AT&T.

“This is just the halfway point,” Ekeland said, noting that he expected and respected the jury’s verdict and that federal criminal win rates exceed 99%. Ekeland’s main argument is that the Department of Justice was able to bring the case after the IRS, which was involved in the decade-long investigation, contacted Bitcoin Fog customer service asking if it’d be a good platform to launder funds earned from selling drugs.

“If the government can get criminal venue from what they did in this case, that means that any prosecutor in the f***ing United States can sit down at their computer in Podunkville, do a transaction on your website and then criminally charge you in the place that they do it,” he said. That “blows a hole in the venue clause” set up by the U.S. Constitution.

See also: When Did Privacy Become a Bad Word? | Opinion

Adding to this issue is that Ekeland and his partner on the case Mike Hassard, a friend of Sterlingov, filed motions to dismiss the case and for presiding District Judge Randolph Moss to clarify the “venue issue” that were only answered “from the bench” the day the trial began. “There’s a gigantic venue issue … and I can kind of tell that the judge knew” that.

There are other issues Ekeland intends to raise when he files a notice of appeal after Sterlingov’s sentencing this summer having to do with what the government was allowed to enter into evidence versus the defense and other “shaddy” background issues that may cast doubt on the decision.

“I mean, we got [into evidence] that [Sterlingov] was in jail, when Bitcoin Fog took his last withdrawal,” he said. However, there are other issues about the site’s operations and sunsetting that occurred when Sterlingov could not have had access to the servers, Ekeland noted. More importantly, Ekeland said that the government never conclusively showed Sterlingov ever operated or profited from the site — he was just an early user.

“The flow of funds is not the same as flow of control,” Ekeland said, discussing a particular series of transactions supposedly linking Sterlingov to Bitcoin Fog’s domain name registrar. He suggested that in 2011 Sterlingov, who had supported his lifestyle by trading bitcoin, sold bitcoin to the people who started Bitcoin Fog.

This is a point J.W. Verret, an associate professor at George Mason University’s Antonin Scalia Law School, raised in a Cointelegraph op-ed, noting “Sterlingov may have sold Bitcoin to someone who bought the Bitcoin Fog website, or that someone may have later sold Bitcoin to someone who then sold it to someone else.”

Matt Price, who participated in the government’s investigation of Bitcoin Fog while with the IRS Criminal Investigation team and who now leads strategic engagement at on-chain analysis firm Elliptic, disagrees. “The evidence linking to that transaction was very clear — we had source information, I’ve seen the records. That was not the most complicated tracing I’ve ever done.”

See also: Privacy Is a Human Right | Opinion

It’s a significant point considering that much of the criminal defense hinged on discrediting the notion of on-chain analysis — particularly that of Chainalysis’ Reactor software used by numerous government agencies around the world. In one of the pre-trial hearings, which ended up totalling over 1,800 pages of records, Ekeland referred to Chainalysis’ software as “junk science.”

In particular, in a lengthy pretrial debate, there were concerns the software had not been “peer-reviewed” or scientifically accredited and could generate false positives. This ended up not mattering much in court: Judge Moss said he was “unpersuaded” by the defense’s stance that blockchain analytics is faulty.

“Substantial evidence supports the government’s submission that the software is highly reliable—and, if anything, conservative,” Moss wrote in a 31-page pre-trial order.

This may cycle back to the appeals case Ekeland is building: In August, Jonelle Still, director of investigations and intelligence at competitor analysis firm CipherTrace, submitted a 41-page expert report claiming Chainalysis used “unverifiable” and “incomplete” techniques to incorrectly link Sterlingov to Bitcoin Fog. Mastercard, which bought CipherTrace in 2021, later spiked the report.

“We lost our tracing expert right before the trial,” Ekeland said, adding “we never got a really clear reason why.”

For its part, a Chainalysis representative said over email that “the decision directly dismisses concerns around error rate, peer review or testing,” adding those issues are hardly “relevant to the underlying technology.” It was a point Price agreed with, saying the argument “fell flat with the jury.”

Questions about blockchain analysis to one side, Price said his investigations while at the IRS were “old fashioned manual police work.” The case took a decade to build, “we were all over traveling around the world, taking all kinds of different investigative steps, reviewing records, using every tool at our disposal,” he said.

While Price said the average crypto user has every right to preserve their financial privacy, he noted that Bitcoin Fog’s website, corporate and social media communications and branding suggested it was actively soliciting funds from criminal enterprises.

“Privacy is a fine line. If you’re not taking any steps whatsoever to prevent child sexual abuse material, darknet markets, ransomware, the Bitfenix hack, things of that nature for using your service, you’re actually, in my mind, as bad or worse than the people involved in the actual illicit activity,” Price said.

See also: Man Who Laundered Billions in Bitcoins From Bitfinex Says He Used Bitcoin Fog

Many people in the crypto industry — whether or not it accepts Sterlingov’s guilty verdict — would likely disagree. Crypto operates on the principle of credible neutrality, the idea that protocols should not be able to discriminate against or censor users, just as a dollar bill does not care who uses it. And, perhaps unfortunately, the only way to ensure that platforms remain accessible for all is to ensure they can also facilitate the worst actors.

Ekeland might see that as a frightening prospect, but a wrongful conviction based on “circumstantial” evidence as worse.

“I think this is really scary for anyone involved in bitcoin,” he said of TK. “The underlying assumptions that people were making about the traces is essentially that the flow of funds equals the flow of control.”

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

NBTC is the editorial account for NBTC News, covering Bitcoin, Ethereum, DeFi, blockchain infrastructure, exchanges, mining, regulation and digital asset markets. The editorial team focuses on clear sourcing, timely updates and practical context for crypto readers.

Related Posts

SEC Chair Atkins Reflects on Hester Peirce’s Legacy

08/10/2026

Minecraft, Candy Crush Among 11 Games in EU Virtual Currency Crackdown

08/10/2026

America at a crossroads: Commissioner Peirce’s parting challenge

08/10/2026

Possible next crypto czar, Jay Clayton, began crypto’s regulation-by-enforcement at SEC

08/10/2026
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

SEC Chair Atkins Reflects on Hester Peirce’s Legacy

08/10/2026

Binance now lets users turn stocks into on-chain tokens

08/10/2026

Bitcoin Price Pounds the $87K Wall as Bulls Refuse to Back Down

08/10/2026
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.