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

Stocks down? No problem for these crypto execs

07/12/2025

Former DEA agent Paul Campo hit with digital assets money laundering charges

07/12/2025

Colombia Gets Local Crypto Access Through Kraken Following Its MiCA Approval

07/12/2025
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

    Ethereum Struggles Below $3,000 as Long-Term Holders Cash Out

    06/12/2025

    Where’s Ethereum Headed as Price Stalls at Middle Bollinger Band?

    05/12/2025

    When Ethereum falls, privacy rises

    05/12/2025

    Ethereum Whale Returns After a Decade, Stakes 40,000 ETH

    05/12/2025

    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

    NFT sales show modest $77M, Ethereum NFT sales drop 13%

    06/12/2025

    Pudgy Penguins Brand Licensing Deal with Schleich Signals NFT Mainstream Breakthrough

    06/12/2025

    NFT Market Sees Massive Engagement Surge As LINK, PENGU And ICP Lead Daily Rankings

    05/12/2025

    Beeple Made Robot Dogs With Musk, Zuckerberg, and Warhol Heads That Poop NFTs

    05/12/2025

    Stocks down? No problem for these crypto execs

    07/12/2025

    Former DEA agent Paul Campo hit with digital assets money laundering charges

    07/12/2025

    Colombia Gets Local Crypto Access Through Kraken Following Its MiCA Approval

    07/12/2025

    Kakao Accelerates Stablecoin Plans as Naver Moves to Merge With Upbit Operator

    07/12/2025
  • Blockchain

    Axelar Unveils AgentFlux to Bring AI Agents OnChain, Without Cloud Risks

    07/12/2025

    Sei Network Gets Smarter with Allora’s New Predictive AI Feeds

    07/12/2025

    AGI Open Network Joins Infiblue World to Accelerate Web3-based Social Experiences

    07/12/2025

    Blockdaemon, VerifiedX Join Forces to Deliver Mass-Market, Self-Custodial DeFi

    07/12/2025

    OKX Wallet, City Protocol Partner to Unlock Cross-Chain RWA Access

    07/12/2025
  • DeFi

    Revolutionary Real-World Asset Consortium Launches on Solana to Democratize Finance

    07/12/2025

    DefiLlama Starts Tracking Hybrid Hyper AMM of Atmos Protocol on Supra Labs

    07/12/2025

    Spectra launches on Flare with yield trading for sFLR and upcoming stXRP

    07/12/2025

    Cwallet Cwallet Partners with Hosico to Boost Trust and Security in Web3 Finance

    07/12/2025

    What 2025 Proved About Passive DeFi and Why AI Agent Systems Like Theoriq’s AlphaVault Are the Next Step

    07/12/2025
  • Metaverse

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

    05/12/2025

    Meta Plans 30% Cut to Metaverse Budget as Reality Becomes Less Virtual: Bloomberg

    04/12/2025

    Cambridge Institute Joins InfblueNFT to Transform Digital Communication

    21/11/2025

    AGI Open Network Partners with MetaMars to Drive Marverse Economy

    15/11/2025

    Koda Nexus Opens in Otherside, Bored Ape Yacht Club Creator Debuts Social Hub

    13/11/2025
  • Regulation

    Stocks down? No problem for these crypto execs

    07/12/2025

    Kakao Accelerates Stablecoin Plans as Naver Moves to Merge With Upbit Operator

    07/12/2025

    Coinbase reveals 9 crypto ideas it wants to bankroll in 2026

    07/12/2025

    The Crypto Fed? Trump’s Chair Search Takes a Strange New Turn

    07/12/2025

    U.S. Bureau delays GDP report after government shutdown

    07/12/2025
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Colombia Gets Local Crypto Access Through Kraken Following Its MiCA Approval

    07/12/2025

    Former Binance.US CEO launches stablecoin platform ahead of L1 network

    07/12/2025

    Robinhood shares rise despite Connecticut cease-and-desist order

    07/12/2025

    Kraken Launches High-Touch VIP Program for Ultra High Net Worth Clients

    07/12/2025

    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

    GaFin Partners with tauntAI to Advance Innovation in AI-Led Web3 Gaming

    07/12/2025

    Elderglade and zkLink Forge Strategic Partnership to Advance Cross-Chain Web3 Gaming

    03/12/2025

    DATA2073 Launches Optimized Android Build With Faster Battles and Seamless Web3 Gameplay

    02/12/2025

    Grand Theft Auto Dev Warns That Generative AI Could Harm Games

    02/12/2025

    Crypto miners in Russia’s Caucasus region continue operating, defying ban

    07/12/2025

    HIVE Expands to 300 MW in Paraguay as Industrial Union Warns of 2029 ‘Grid Collapse’

    06/12/2025

    Paraguayan Lower House Demands Official Cryptocurrency Mining Data

    06/12/2025

    70% of Top Miners Pivot to $20B AI Market

    05/12/2025

    Former DEA agent Paul Campo hit with digital assets money laundering charges

    07/12/2025

    SEC Lawsuit Filed This Date 5 Years Ago

    07/12/2025

    Stablecoins, Trump’s Involvement and DeFi Pain Points Examined

    07/12/2025

    ‘European SEC’ proposal sparks licensing concerns, institutional ambitions

    07/12/2025

    Stocks down? No problem for these crypto execs

    07/12/2025

    Former DEA agent Paul Campo hit with digital assets money laundering charges

    07/12/2025

    Colombia Gets Local Crypto Access Through Kraken Following Its MiCA Approval

    07/12/2025

    Kakao Accelerates Stablecoin Plans as Naver Moves to Merge With Upbit Operator

    07/12/2025
  • 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

Former DEA agent Paul Campo hit with digital assets money laundering charges

07/12/2025

SEC Lawsuit Filed This Date 5 Years Ago

07/12/2025

Stablecoins, Trump’s Involvement and DeFi Pain Points Examined

07/12/2025

‘European SEC’ proposal sparks licensing concerns, institutional ambitions

07/12/2025
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

Stocks down? No problem for these crypto execs

07/12/2025

Former DEA agent Paul Campo hit with digital assets money laundering charges

07/12/2025

Colombia Gets Local Crypto Access Through Kraken Following Its MiCA Approval

07/12/2025
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.