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

New Stablecoin verUSD Launches With $100M In Institutional Commitments

17/10/2026

Pyth Network Expands ETF Coverage with New Market Data

17/10/2026

Analyst Sees 75% Chance Crypto Cycle Has Turned as Bitcoin Pulls Back

17/10/2026
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

    Analyst Sees 75% Chance Crypto Cycle Has Turned as Bitcoin Pulls Back

    17/10/2026

    Dormant whale moves 4.5K Bitcoin again, adding a new risk to BTC’s 2% correction

    17/10/2026

    Analysts see 10-year Treasury yield hitting 6%. Bitcoin bulls shouldn’t panic

    17/10/2026

    Did Strategy Company Sell $297 Million Worth of Bitcoin? The Reason for the Massive Transfer Explained!

    17/10/2026

    Abraxas Capital hedges $353M ETH short with $32M buy – Here’s why

    17/10/2026

    Ethereum goes through biggest liquidation event in six months with $242M in 24 hours

    17/10/2026

    Ethereum dips below $2,400 as hot inflation fuels selling and long liquidations

    17/10/2026

    Ethereum Whale 0x8E8b Buys Back 6,010 ETH Worth $14.23M

    16/10/2026

    New Stablecoin verUSD Launches With $100M In Institutional Commitments

    17/10/2026

    Ripple No Longer Member of BIS Cross-Border Payments Task Force

    17/10/2026

    Winklevoss-owned Gemini switches Zcash software ahead of faster 25-second blocks

    17/10/2026

    Web3 Founder Explains Why Cardano Remains on His Watchlist

    17/10/2026

    Alex Fong counts losses as Blur folds

    14/10/2026

    Collector Crypt Logs $151 Million in Monthly Pack Sales

    14/10/2026

    Pudgy Penguins gets support as billionaire buys 117 NFTs

    12/10/2026

    NFT sales rise to $39.85m as Pudgy Penguins jump 125%

    10/10/2026

    New Stablecoin verUSD Launches With $100M In Institutional Commitments

    17/10/2026

    Pyth Network Expands ETF Coverage with New Market Data

    17/10/2026

    Analyst Sees 75% Chance Crypto Cycle Has Turned as Bitcoin Pulls Back

    17/10/2026

    India to Issue First Tokenized Corporate Bonds Settled in Digital Rupee

    17/10/2026
  • Blockchain

    Pyth Network Expands ETF Coverage with New Market Data

    17/10/2026

    Omnichain Launchpad Printr Shuts Down, Cancels Token Launch And Airdrop

    17/10/2026

    Nethermind Moves Cross-Chain Node Operations From LayerZero To Chainlink CCIP

    17/10/2026

    Japan targets early 2030s launch for blockchain-based stock and bond settlement system

    17/10/2026

    Wirex Adds Tempo as Settlement Layer for Enterprise Stablecoin Cards

    17/10/2026
  • DeFi

    Aave V4’s Arc Markets Connect Dollar-Euro Loans to Shared Liquidity

    17/10/2026

    Ethereum Shows Strong Yields on Curve Finance

    17/10/2026

    Only 18% of Uniswap v3 positions under $1,000 beat holding after gas, study finds

    17/10/2026

    Lido Announces Fallback Exits Feature to Enhance Lending

    17/10/2026

    Morpho Partners with Pendle for Innovative DeFi Integrations

    17/10/2026
  • 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

    India to Issue First Tokenized Corporate Bonds Settled in Digital Rupee

    17/10/2026

    Shinhan and Visa team up to test stablecoin issuance and B2B settlements in South Korea

    17/10/2026

    Dollar Stablecoins Could Reinforce U.S. Currency Dominance

    17/10/2026

    Polymarket in Talks to Raise $1B at $20B Valuation, Trump Jr.-Co-Founded Firm to Lead Round

    17/10/2026

    North Korean hackers are moving tens of millions on Hyperliquid as Trump pushes to onshore the crypto platform

    17/10/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    US Government Moves Half a Billion Worth of Crypto in Just Few Hours

    16/10/2026

    Kalshi takes on CME with first-ever U.S. oil futures that never expire

    16/10/2026

    BaiBai Integrates with 0x API to Enhance Trading Experience

    16/10/2026

    Standard Chartered to expand institutional crypto and RWA custody to Singapore

    16/10/2026

    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

    Binance Pool shuts on November 10, with record access ending two weeks later

    17/10/2026

    Bitcoin Mining Difficulty Jumps 5.92% in Third-Largest Hike of 2026

    17/10/2026

    Fortitude sold $8.3 million in borrowed Zcash to fund its mining expansion

    17/10/2026

    Block’s Proto Bitcoin Mining Hardware Now Available to Own via Sazmining

    17/10/2026

    Connecticut’s new lawsuit against Kalshi piles on to prediction market legal fight

    17/10/2026

    Investors in crypto schemes launched by the Trump family have lost more than $4.7 billion

    17/10/2026

    Lawsuit says Tether locked $42.4 million in USDT months before any warrant existed

    17/10/2026

    Clarity’s failure could speed crypto innovation while shielding incumbents

    16/10/2026

    New Stablecoin verUSD Launches With $100M In Institutional Commitments

    17/10/2026

    Pyth Network Expands ETF Coverage with New Market Data

    17/10/2026

    Analyst Sees 75% Chance Crypto Cycle Has Turned as Bitcoin Pulls Back

    17/10/2026

    India to Issue First Tokenized Corporate Bonds Settled in Digital Rupee

    17/10/2026
  • 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

Connecticut’s new lawsuit against Kalshi piles on to prediction market legal fight

17/10/2026

Investors in crypto schemes launched by the Trump family have lost more than $4.7 billion

17/10/2026

Lawsuit says Tether locked $42.4 million in USDT months before any warrant existed

17/10/2026

Clarity’s failure could speed crypto innovation while shielding incumbents

16/10/2026
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

New Stablecoin verUSD Launches With $100M In Institutional Commitments

17/10/2026

Pyth Network Expands ETF Coverage with New Market Data

17/10/2026

Analyst Sees 75% Chance Crypto Cycle Has Turned as Bitcoin Pulls Back

17/10/2026
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.