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

Multicoin exits the $1.65 billion Solana treasury company it helped launch eight months ago

02/09/2026

Stellar Sees Developer Activity Soar 125% as Interest in Its Network Accelerates

02/09/2026

Longling Capital-Linked Whale Moves $3.8M in WLFI to Binance, Raising Selloff Speculation

02/09/2026
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

    But what do rising accumulation trends mean?

    02/09/2026

    Three key demand drivers stall at once, leaving Bitcoin’s $64,000 support to long-term holders

    01/09/2026

    Bitcoin’s Four-Week Winning Streak Faces Test as Demand Softens

    01/09/2026

    Arthur Hayes Explains Why Bitcoin Is Still Stuck Despite Money Printing

    01/09/2026

    Can ETH Blast Toward $2,750 Next?

    01/09/2026

    Why Ethereum’s exit queue hitting 0 may not be a good sign – Yet

    01/09/2026

    Ethereum reclaims KEY level after 108 days – Why $2,500 matters next

    01/09/2026

    A 36-day staking bottleneck is costing Ethereum depositors over $350,000 in lost rewards daily

    01/09/2026

    Stellar Sees Developer Activity Soar 125% as Interest in Its Network Accelerates

    02/09/2026

    Cardano Network Activity Rises Sharply as Daily Transactions Soar 33% Hit 32,841

    01/09/2026

    Shiba Inu Community Celebrates Top-50 Whale Holding 5,000,000,058,418 SHIB for 4+ Years Without Selling

    01/09/2026

    $11B Manager 21Shares Identifies 4 Key Structural Shifts in XRP as Price Surges 35%

    01/09/2026

    NFT platforms market growth eyes $80B as sports fuels demand

    01/09/2026

    Pudgy Penguins and OpenSea unite for Collector Park NYC festival Sept. 3

    30/08/2026

    NFT sales fall 44.7% to $63.3M as Ethereum leads

    29/08/2026

    32 NFT predictions that aged like milk

    25/08/2026

    Multicoin exits the $1.65 billion Solana treasury company it helped launch eight months ago

    02/09/2026

    Stellar Sees Developer Activity Soar 125% as Interest in Its Network Accelerates

    02/09/2026

    Longling Capital-Linked Whale Moves $3.8M in WLFI to Binance, Raising Selloff Speculation

    02/09/2026

    Avail Network Halts Block Production for 40 Minutes; Operations Resume

    02/09/2026
  • Blockchain

    Avail Network Halts Block Production for 40 Minutes; Operations Resume

    02/09/2026

    Etherscan adjusts to AI agent internet takeover with API rollout on 60+ EVM chains

    01/09/2026

    Ethereum Live on Solana as Network Integrates New Features

    01/09/2026

    Filecoin Positioned as Data Layer Amid CoreWeave’s Growth

    01/09/2026

    BIP-110 Supporters Revive Minority Fork, Slash Block Size to Just 300 KB

    01/09/2026
  • DeFi

    Crypto.com-promoted Tectonic forces Cronos to halt, rewind

    01/09/2026

    Dialectic plans SpaceX DeFi vault that lets holders borrow without selling

    01/09/2026

    DeFi Development prices $19.8M CHAD stock offering

    01/09/2026

    AerodromeFi Envisions Onchain Future for Stocks

    01/09/2026

    Firelight raises $8 million, expands beyond XRP as it aims to make DeFi less scary for fintechs

    01/09/2026
  • 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

    Multicoin exits the $1.65 billion Solana treasury company it helped launch eight months ago

    02/09/2026

    Solstice Targets 20% APY With Solana Tokens Tied to Strategy’s STRC

    01/09/2026

    Goldman Sachs Issues Statement on the Fed’s Upcoming Interest Rate Decisions – “In September…”

    01/09/2026

    Bitcoin holders Strategy and Metaplanet face stock-index exclusion under MSCI’s new proposal

    01/09/2026

    Trump family’s World Liberty Financial delay plans to sell Maldives resort token

    01/09/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Longling Capital-Linked Whale Moves $3.8M in WLFI to Binance, Raising Selloff Speculation

    02/09/2026

    Bitcoin Exchange Coinbase Announces Listing of Two Altcoins on Spot Trading Platform! Here Are the Details

    01/09/2026

    Cryptocurrency Exchange Trading Volume Doubled in Five Days! Will the Recovery Continue? Here Are the Details

    01/09/2026

    Coinbase Slack micropayments settle AI payments in 200ms

    01/09/2026

    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

    Hut 8’s Texas power site sits inside Anthropic’s $35 billion AI deal

    01/09/2026

    AI data centers are learning the power trick Bitcoin miners mastered first

    01/09/2026

    American Bitcoin Produces 11-13 BTC Daily, Holds Over 8,300 BTC

    31/08/2026

    Veteran Bitcoin developer Luke Dashjr exits OCEAN pool – Will hash power follow him to new pool?

    31/08/2026

    Japan Proposes Tax Filing Exemption for Trust-Based Stablecoin Holder Changes

    01/09/2026

    Prosecutors Seek 20-Year Sentence for ‘Jonber Kim’ in $247M Crypto Fraud Case

    01/09/2026

    South Korea refers four to prosecutors over $204M crypto payments for illegal car exports to Russia, Belarus

    01/09/2026

    South Korea plans wallet tracing tools to enforce 2027 crypto tax

    01/09/2026

    Multicoin exits the $1.65 billion Solana treasury company it helped launch eight months ago

    02/09/2026

    Stellar Sees Developer Activity Soar 125% as Interest in Its Network Accelerates

    02/09/2026

    Longling Capital-Linked Whale Moves $3.8M in WLFI to Binance, Raising Selloff Speculation

    02/09/2026

    Avail Network Halts Block Production for 40 Minutes; Operations Resume

    02/09/2026
  • 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

Japan Proposes Tax Filing Exemption for Trust-Based Stablecoin Holder Changes

01/09/2026

Prosecutors Seek 20-Year Sentence for ‘Jonber Kim’ in $247M Crypto Fraud Case

01/09/2026

South Korea refers four to prosecutors over $204M crypto payments for illegal car exports to Russia, Belarus

01/09/2026

South Korea plans wallet tracing tools to enforce 2027 crypto tax

01/09/2026
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

Multicoin exits the $1.65 billion Solana treasury company it helped launch eight months ago

02/09/2026

Stellar Sees Developer Activity Soar 125% as Interest in Its Network Accelerates

02/09/2026

Longling Capital-Linked Whale Moves $3.8M in WLFI to Binance, Raising Selloff Speculation

02/09/2026
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.