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

Decisive Step Toward Revolutionary Decentralized Exchange Mainnet

08/02/2026

Large Whales Are Active as Bitcoin Recovers – Here Are Their Transactions

08/02/2026

What Will the Fed’s Interest Rate Decisions Be This Year? ‘Even If They Keep Rates Unchanged in January…’

08/02/2026
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

    Price Breaks All-Time High Record Again – Here’s What We Know

    04/08/2025

    Bitcoin Switzerland? El Salvador to Host First Fully Native Bitcoin Capital Markets

    04/08/2025

    Bitcoin Breaks $119K, but XLM and HBAR Aren’t Impressed by Its Meager Percentage Gain

    04/08/2025

    High-Stakes Consolidation Could Define Q3 Trend

    04/08/2025

    Large Whales Are Active as Bitcoin Recovers – Here Are Their Transactions

    08/02/2026

    Ethereum whales ignite market panic with major ETH offload

    08/02/2026

    Ethereum Price UP Above $2,000 Again, but Traders Remain Cautious

    08/02/2026

    Ethereum price hits key support as funding rate falls, liquidations jump

    08/02/2026

    The Sui Ecosystem’s Top 3 Altcoin Performers

    29/07/2025

    Floki Launches $69000 Guerrilla Marketing Challenge With FlokiUltras3

    28/07/2025

    Crypto Beast denies role in Altcoin (ALT) crash rug pull, blames snipers

    28/07/2025

    $1.6 Billion XRP Surge: Here’s What’s Unfolding

    28/07/2025

    Justin Bieber Paid $1.3 Million for a Bored Ape NFT. It’s Now Worth $12K

    07/02/2026

    NFT market cap slides back to 2021 pre-hype levels, near $1.5B

    06/02/2026

    Gemini cuts 25% of staff and exits UK and EU markets amid ongoing crypto downturn

    05/02/2026

    Ink-based Perp DEX Nado Airdrops Official NFT Collection

    31/01/2026

    Decisive Step Toward Revolutionary Decentralized Exchange Mainnet

    08/02/2026

    Large Whales Are Active as Bitcoin Recovers – Here Are Their Transactions

    08/02/2026

    What Will the Fed’s Interest Rate Decisions Be This Year? ‘Even If They Keep Rates Unchanged in January…’

    08/02/2026

    Russia arrests a man for transferring cryptocurrency to Ukraine

    08/02/2026
  • Blockchain

    Decisive Step Toward Revolutionary Decentralized Exchange Mainnet

    08/02/2026

    Canopy launches Canopy Templates to power AI-assisted blockchain development

    08/02/2026

    Story Witch Partnership Ignites Global K-Culture Revolution Through Blockchain IP Infrastructure

    08/02/2026

    A16Z says AI agents will need crypto rails for identity and payments

    08/02/2026

    Multiliquid, Metalayer launch instant redemption backstop for RWAs on Solana

    08/02/2026
  • DeFi

    Coinbase’s Crypto-Backed Loans Notch Record Liquidations Amid Bitcoin, Ethereum Plunge

    07/02/2026

    HPX Taps Phoenix Finance to Integrate RWA-Backed $PUSD Stablecoin

    07/02/2026

    UnifAI Taps HyperGPT to Power AI-Driven DeFi Automation

    07/02/2026

    Lombard Finance Adopts Chainlink Proof of Reserve to Verify LBTC and BTC.b Collateral

    07/02/2026

    Pieverse and TermMax Partner to Launch AI-Driven Fixed-Rate Yields for Agentic DeFi

    07/02/2026
  • Metaverse

    Corning shares surge over 16% after Meta signs $6B data center deal

    27/01/2026

    Mark Zuckerberg’s Meta signs $6B fiber deal with Corning to expand US data centers

    27/01/2026

    Meta to cut 10% of metaverse arm this week amid AI push: Report

    13/01/2026

    Yuga Labs Acquires Otherside Creator Platform From Improbable

    27/12/2025

    Meta CEO Mark Zuckerberg Made a Decision That Will Deeply Affect Metaverse Projects! Here Are the Details

    05/12/2025
  • Regulation

    What Will the Fed’s Interest Rate Decisions Be This Year? ‘Even If They Keep Rates Unchanged in January…’

    08/02/2026

    Silver Is Running Out — Buy Now Before There’s Nothing Left

    08/02/2026

    Crypto slump hits ARK ETFs in Q4, Coinbase becomes top detractor

    08/02/2026

    S&P 500 Pullback Extends as Market Momentum Slows

    08/02/2026

    Argentina Pushes Crypto Deeper Into Everyday Finance

    07/02/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    South Korea Sees Trading Volume Surge in 17 Altcoins – Seen After Major Drop, Here’s the List

    07/02/2026

    Prediction market volume hit $12 billion in January, breaking all-time records

    07/02/2026

    JUST IN! Binance Announces Delisting of Six Altcoins! Huge Price Drops Experiencing!

    07/02/2026

    Binance moves 1,315 bitcoin into SAFU fund as it prepares to buy $1 billion BTC

    07/02/2026

    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

    Why 2025 Will See the Comeback of the ICO

    26/12/2024

    PlayZap Games Joins GENCY AI to Revolutionize AI-Led Advertising in GameFi Sector

    06/02/2026

    Enjin Launches Cross-Game Multiverse Campaign

    05/02/2026

    New ‘Axie Infinity’ Ethereum Gaming Token Will Be Airdropped to AXS Stakers

    05/02/2026

    W3GG Taps Lussaio to Revolutionize Web3 Gaming Experience with Earning Rewards

    01/02/2026

    Bitcoin difficulty drops by over 11%, in sharpest drop since 2021 China ban

    08/02/2026

    Is Bitcoin mining profitable?

    07/02/2026

    Stunning 11.16% Drop Signals Major Network Shift

    07/02/2026

    Venezuela’s Oil Industry Resurgence May Precede a Flared-Gas Bitcoin Mining Boom

    07/02/2026

    Russia arrests a man for transferring cryptocurrency to Ukraine

    08/02/2026

    Brazil Prepares to Tax Cryptocurrency Flows

    08/02/2026

    Vietnam to tax crypto like stocks with 0.1% trading levy: Report

    08/02/2026

    CFTC Expands Crypto Collateral Pilot to Include National Trust Bank Stablecoins

    08/02/2026

    Decisive Step Toward Revolutionary Decentralized Exchange Mainnet

    08/02/2026

    Large Whales Are Active as Bitcoin Recovers – Here Are Their Transactions

    08/02/2026

    What Will the Fed’s Interest Rate Decisions Be This Year? ‘Even If They Keep Rates Unchanged in January…’

    08/02/2026

    Russia arrests a man for transferring cryptocurrency to Ukraine

    08/02/2026
  • 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

Related Posts

Russia arrests a man for transferring cryptocurrency to Ukraine

08/02/2026

Brazil Prepares to Tax Cryptocurrency Flows

08/02/2026

Vietnam to tax crypto like stocks with 0.1% trading levy: Report

08/02/2026

CFTC Expands Crypto Collateral Pilot to Include National Trust Bank Stablecoins

08/02/2026
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

Decisive Step Toward Revolutionary Decentralized Exchange Mainnet

08/02/2026

Large Whales Are Active as Bitcoin Recovers – Here Are Their Transactions

08/02/2026

What Will the Fed’s Interest Rate Decisions Be This Year? ‘Even If They Keep Rates Unchanged in January…’

08/02/2026
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.