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

BitForex Founder’s Wallet Transfers $177M in Ethereum to Binance, On-Chain Data Shows

15/05/2026

Haven AI Taps LinkLayerAI to Accelerate Verifiable On-Chain Execution and AI Trading Agents

15/05/2026

US-Iran Uncertainty Hits Bitcoin and Altcoins! BTC and Ethereum (ETH) Couldn’t Hold On, Experienced a Sharp Drop! Here’s Everything You Need to Know

15/05/2026
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

    US-Iran Uncertainty Hits Bitcoin and Altcoins! BTC and Ethereum (ETH) Couldn’t Hold On, Experienced a Sharp Drop! Here’s Everything You Need to Know

    15/05/2026

    Bitcoin drops toward $65k after new Trump Iran delay sends oil higher, triggering $200M wipeout

    15/05/2026

    Peter Schiff Warns on Bitcoin Use in Mortgage Down Payments

    15/05/2026

    Bitcoin mortgages debut with 60% haircut and no margin calls

    15/05/2026

    ETH Must Reclaim This Key Level to Restart Bull Run

    15/05/2026

    ‘Positive for ETH price’ – Grayscale backs Ethereum staking reward cap

    15/05/2026

    How will Ethereum’s ‘What You See Is What You Sign’ security model prevent hacks?

    15/05/2026

    Genesis Wallet Dormant Since 2015 Transfers 790 ETH Worth $1.78 Million

    15/05/2026

    Katana Price Plunges 23% Hours After Binance Spot Listing

    15/05/2026

    Kaspa Explodes Higher as Hard Fork Frenzy Sparks Breakout Showdown

    15/05/2026

    David Schwartz Admits XRP Price May Not Always Reflect Rational Market Expectations

    15/05/2026

    Giant Animoca Brands Partners with and Invests in Altcoin Closely Followed by Turks! Two Target Regions Identified!

    15/05/2026

    Dapper Labs Pauses NFL ALL DAY NFT Minting to Develop Next-Gen Product

    14/05/2026

    Yuga Labs CEO defends Bored Ape price comeback

    12/05/2026

    BAYC, Cryptopunks, and MAYC Floor Prices Climb as Blue-Chip NFT Demand Returns

    11/05/2026

    $X@AI BRC-20 NFTs and Courtyard Outshine Among Weekly Top 10 NFT Performers by Sales Volume

    11/05/2026

    BitForex Founder’s Wallet Transfers $177M in Ethereum to Binance, On-Chain Data Shows

    15/05/2026

    Haven AI Taps LinkLayerAI to Accelerate Verifiable On-Chain Execution and AI Trading Agents

    15/05/2026

    US-Iran Uncertainty Hits Bitcoin and Altcoins! BTC and Ethereum (ETH) Couldn’t Hold On, Experienced a Sharp Drop! Here’s Everything You Need to Know

    15/05/2026

    ETH Must Reclaim This Key Level to Restart Bull Run

    15/05/2026
  • Blockchain

    Haven AI Taps LinkLayerAI to Accelerate Verifiable On-Chain Execution and AI Trading Agents

    15/05/2026

    DTCC builds blockchain-based collateral system with Chainlink integration

    15/05/2026

    BlackRock files for new tokenized fund structure with Securitize infrastructure

    15/05/2026

    Tezos Tests Post-Quantum Privacy as Founder Slams ‘Half-Baked’ Bitcoin Quantum Theories

    15/05/2026

    Kraken to replace LayerZero with Chainlink to bridge assets across blockchains

    15/05/2026
  • DeFi

    Universal Digital Introduces Real-Time Proof Of Reserves To USDU Stablecoin With Brevis-ZK, Bringing User Trust To DeFi

    14/05/2026

    SodaBot and NFPrompt Unite to Enhance AI-Powered Web3 Experience

    14/05/2026

    Firelight to Build a New Protection Layer for Institutional DeFi

    14/05/2026

    River Integrates OKX DEX for One-Tap Multi-Chain $satUSD Swaps

    14/05/2026

    Glider Launches Solana Ecosystem Portfolio – A One-Click Gateway to Automated DeFi Management

    14/05/2026
  • Metaverse

    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

    Planet Hares Partners With Magne.AI To Bridge Web3 Metaverse With Smartphone Mobile-Ready Applications For Mass Adoption

    08/04/2026

    Mark Zuckerberg’s Meta launches new AI initiative after metaverse retreat

    25/03/2026

    Meta partners with Arm to develop new CPUs for AI deployments

    24/03/2026
  • Regulation

    Alberta Investment Management Acquires $219M in MicroStrategy Stock, Bolstering Institutional Bitcoin Exposure

    15/05/2026

    This is the biggest trader in Congress with over 1000 trades this last year

    15/05/2026

    Wall Street’s FED Interest Rate Expectations Have Changed! What is the Likelihood of an Interest Rate Cut? Here are the Latest Predictions

    15/05/2026

    Anchorage Digital and M0 team up to power next wave of regulated stablecoins

    15/05/2026

    AIMCo MicroStrategy Stock Buy Signals a Bold Sovereign Wealth Fund Bitcoin Entry

    15/05/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    BitForex Founder’s Wallet Transfers $177M in Ethereum to Binance, On-Chain Data Shows

    15/05/2026

    Exodus launches XO Cash as AI agents become crypto’s next payments battleground

    15/05/2026

    GMX Labs Appoints Community Member Q as First CEO, Signaling a Shift Toward Formal Governance

    15/05/2026

    Arrington Capital-Linked Wallet Moves $2.26M in COMP to Binance, Sparking Sell-Off

    15/05/2026

    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

    NUMINE Joins Outer Ring MMO for the Expansion of Web3 Gaming Experiences

    13/05/2026

    GMatrixs And MiniverseCore Join Forces To Unlock Web3 Gaming Experience With Cross-Chain DApp, DeFi Applications

    11/05/2026

    MetaOne Joins MetYa to Boost SocialFi Gaming with Exclusive Rewards

    10/05/2026

    Quantra and FishWar Unite to Advance AI-Powered Web3 Gaming on Sei

    10/05/2026

    Bitfufu Produces 145 BTC in April, Lifts Holdings to 1,812 Bitcoin

    15/05/2026

    Bitcoin Miner MARA Stock Under Pressure Following $1.5 Billion Bitcoin Sell-Off

    14/05/2026

    Trump directs USTR Greer to impose more tariffs, raising fresh concerns for crypto miners

    13/05/2026

    Keel shares jump as $145M Q1 loss tests former Bitfarms’ AI pivot

    13/05/2026

    Trump Says World Becoming a ‘Casino’ as Soldier Charged Over Polymarket Maduro Bets

    14/05/2026

    Bermuda pushes stablecoin payments with USDC airdrop as it courts crypto firms, regulators

    14/05/2026

    Crypto bill won’t move without a ban on officials’ industry ties, says U.S. Senator Gillibrand

    14/05/2026

    the Senate must act on crypto market structure legislation

    14/05/2026

    BitForex Founder’s Wallet Transfers $177M in Ethereum to Binance, On-Chain Data Shows

    15/05/2026

    Haven AI Taps LinkLayerAI to Accelerate Verifiable On-Chain Execution and AI Trading Agents

    15/05/2026

    US-Iran Uncertainty Hits Bitcoin and Altcoins! BTC and Ethereum (ETH) Couldn’t Hold On, Experienced a Sharp Drop! Here’s Everything You Need to Know

    15/05/2026

    ETH Must Reclaim This Key Level to Restart Bull Run

    15/05/2026
  • 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

Trump Says World Becoming a ‘Casino’ as Soldier Charged Over Polymarket Maduro Bets

14/05/2026

Bermuda pushes stablecoin payments with USDC airdrop as it courts crypto firms, regulators

14/05/2026

Crypto bill won’t move without a ban on officials’ industry ties, says U.S. Senator Gillibrand

14/05/2026

the Senate must act on crypto market structure legislation

14/05/2026
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

BitForex Founder’s Wallet Transfers $177M in Ethereum to Binance, On-Chain Data Shows

15/05/2026

Haven AI Taps LinkLayerAI to Accelerate Verifiable On-Chain Execution and AI Trading Agents

15/05/2026

US-Iran Uncertainty Hits Bitcoin and Altcoins! BTC and Ethereum (ETH) Couldn’t Hold On, Experienced a Sharp Drop! Here’s Everything You Need to Know

15/05/2026
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.