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

Boston Fed president Collins warns Iran conflict energy shocks could keep rates elevated, pressuring crypto

12/06/2026

‘Green’ Chia Crypto Devours 18 Times More Energy Than Claimed

12/06/2026

Kalshi adds employer checks for traders participating in sensitive prediction markets to curb insider trading

12/06/2026
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

    can bulls save $74K now?

    11/06/2026

    Bitcoin Analysts Debate ‘Sell in May’ Pattern

    11/06/2026

    Bitcoin Price Outlook Turns Cautious as Resistance Builds Near $78,400

    11/06/2026

    Bitcoin Drops to $76K as Fresh US-Iran Tensions Resurface

    11/06/2026

    Can ETH bulls defend crucial $1,500 support as selloff deepens? Check forecast

    11/06/2026

    Dormant Whale Awakens After 3 Years, Borrows $30M on Aave to Buy More Ethereum

    11/06/2026

    BTC.top Founder Jiang Zhuoer Reopens ETH Long Position at $1,645, Eyes Short-Term Rebound

    11/06/2026

    BIT-Related Whale Deposits $5.84M USDC to Avert ETH Liquidation as Unrealized Losses Hit $78M

    10/06/2026

    ‘Green’ Chia Crypto Devours 18 Times More Energy Than Claimed

    12/06/2026

    Ripple CEO Reacts to Crucial UAE Expansion

    11/06/2026

    XRP Las Vegas 2026 opens with speakers calling XRP a future global reserve currency

    11/06/2026

    XRP Eyes Bigger US Payments Role Amid Fed Access Talks

    11/06/2026

    NFTfi Shuts Down After $737M in Loans as NFT Market Contraction Makes Operations Unsustainable

    11/06/2026

    Dogecoin Notes Shibes Have Been ‘Quiet Lately’ And Then The Internet Showed Off What Everyone Has Been Silently Building

    09/06/2026

    Bored Ape Maker Yuga Labs Rescues Dozens of Ethereum NFTs From Exploit

    09/06/2026

    TON Blockchain’s Cross-Chain NFT Market Share Jumps 130% in Q1 Despite Token Price Decline

    08/06/2026

    Boston Fed president Collins warns Iran conflict energy shocks could keep rates elevated, pressuring crypto

    12/06/2026

    ‘Green’ Chia Crypto Devours 18 Times More Energy Than Claimed

    12/06/2026

    Kalshi adds employer checks for traders participating in sensitive prediction markets to curb insider trading

    12/06/2026

    EU confirms OpenAI offers access to cybersecurity model, Anthropic lags behind

    11/06/2026
  • Blockchain

    EU confirms OpenAI offers access to cybersecurity model, Anthropic lags behind

    11/06/2026

    IoTeX Mainnet Halts Block Production for Over 21 Hours, Community Raises Alarms

    11/06/2026

    UNDP Brings Ethereum, Cardano, and Stellar Together to Explore Blockchain for Public Good

    11/06/2026

    Crypto wallets do not make AI autonomous, IC3 study warns

    11/06/2026

    ZIGChain and Ondo Finance partner to expand onchain access to US securities

    11/06/2026
  • DeFi

    AstroX Finance Partners with Okratech Token to Unlock DeFi Liquidity on Web3 Entertainment Platform

    11/06/2026

    Aave Proposes Protocol-Wide Risk Framework After KelpDAO Exploit

    11/06/2026

    BitGo opens Aave, Spark and Tesseract DeFi access to institutions

    11/06/2026

    Bitcoin Layer 2 Project Botanix to Shut Down on July 9, Citing Market Realities

    11/06/2026

    Haven AI Partners with Bit to Enable Secure, Confidential DeFi Applications Powered by Decentralized Identity Solution

    11/06/2026
  • Metaverse

    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

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

    08/04/2026
  • Regulation

    Boston Fed president Collins warns Iran conflict energy shocks could keep rates elevated, pressuring crypto

    12/06/2026

    Trump faces setback as court strikes down 10% tariff on imports

    11/06/2026

    Trump announces three-day ceasefire between Russia and Ukraine with prisoner swap

    11/06/2026

    European Central Bank’s Escrivá calls for finance infrastructure review due to AI risks

    11/06/2026

    UAE exits OPEC after 59 years, escalating tensions with Saudi Arabia over oil production

    11/06/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Binance to Launch Securities Lending Service on June 4, Expanding Into Traditional Finance Territory

    11/06/2026

    Aster DEX Opens New Doors for Korean Stocks

    11/06/2026

    Kalshi Eyes Perpetual Futures for XRP, Solana, Dogecoin—And These Altcoins

    11/06/2026

    CME Group crypto futures go 24/7 as first weekend volume hits $50M

    11/06/2026

    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

    Blazpay Taps Agent War to Boost Innovation AI -Powered GameFi

    11/06/2026

    Pi Network Expands Gaming Ecosystem as CiDi Games Launches Developer Center

    03/06/2026

    GMATRIXS Taps GamePad to Boost Web3 Gaming and DeFi Infrastructure

    02/06/2026

    GamePad Joins Mouse to Simplify On-Chain Transactions for Millions of Gamers

    31/05/2026

    Bitcoin Miner Kiln Infrastructure Raises $458M in Convertible Notes for Data Center Push

    11/06/2026

    Bitfufu Announces 1,855 BTC Treasury, Signaling Strong Bitcoin Accumulation by Bitmain Affiliate

    10/06/2026

    How Does Dogecoin Benefit From Merged Mining With Litecoin?

    09/06/2026

    Expert Flags Bitcoin’s First Hashrate Bear Market as Network Sheds 145 EH/s

    08/06/2026

    Kalshi adds employer checks for traders participating in sensitive prediction markets to curb insider trading

    12/06/2026

    ‘Maximal’ ban on insider trading would hurt prediction markets, says researcher

    11/06/2026

    EU consults on bringing DeFi, prediction markets, and crypto perps under MiCA

    11/06/2026

    Kalshi now requires users to reveal employers as it fights insider trading and market manipulation

    11/06/2026

    Boston Fed president Collins warns Iran conflict energy shocks could keep rates elevated, pressuring crypto

    12/06/2026

    ‘Green’ Chia Crypto Devours 18 Times More Energy Than Claimed

    12/06/2026

    Kalshi adds employer checks for traders participating in sensitive prediction markets to curb insider trading

    12/06/2026

    EU confirms OpenAI offers access to cybersecurity model, Anthropic lags behind

    11/06/2026
  • 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

Kalshi adds employer checks for traders participating in sensitive prediction markets to curb insider trading

12/06/2026

‘Maximal’ ban on insider trading would hurt prediction markets, says researcher

11/06/2026

EU consults on bringing DeFi, prediction markets, and crypto perps under MiCA

11/06/2026

Kalshi now requires users to reveal employers as it fights insider trading and market manipulation

11/06/2026
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

Boston Fed president Collins warns Iran conflict energy shocks could keep rates elevated, pressuring crypto

12/06/2026

‘Green’ Chia Crypto Devours 18 Times More Energy Than Claimed

12/06/2026

Kalshi adds employer checks for traders participating in sensitive prediction markets to curb insider trading

12/06/2026
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.