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

Warren Buffett warns on crypto speculation

10/05/2026

53% of XRP transactions are payments, study shows

10/05/2026

Machi Big Brother Begins Recovery with $2M Profit in 24 Hours

10/05/2026
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

    Bitcoin Price Teeters on Iran Talks as Geopolitics and Options Flows Trap Price in Narrow Range

    10/05/2026

    Jack Dorsey’s Square auto-enables bitcoin payments for millions of U.S. businesses

    10/05/2026

    Strategy Didn’t Buy Bitcoin Today—Did Saylor Say Anything About It?

    10/05/2026

    A Bill Is Being Drafted in the U.S. That Would Allow Miners to Sell Bitcoin to the Government – Major Development

    10/05/2026

    Ethereum Price On Verge Of Breakout, Can Bulls Seize Control?

    10/05/2026

    Ethereum holds steady above $2,300 despite lingering retail distribution

    10/05/2026

    Who Is Behind This $100M Ethereum Move And Why Now?

    10/05/2026

    Massive Holding Signal Sparks Market Interest

    10/05/2026

    53% of XRP transactions are payments, study shows

    10/05/2026

    Ryan Yi: Token rights impact investor returns, DAOs face operational challenges, and the strategic benefits of token consolidation

    10/05/2026

    Stanford Steve: Greg Gard deserves to stay at Wisconsin, Hubert Davis’s mismanagement calls for dismissal, and betting on Houston is a must

    10/05/2026

    15 Altcoins with the Highest Returns Over the Past Month Have Been Announced

    10/05/2026

    Bored Ape NFTs are finally making a comeback as crypto traders rediscover their appetite for risk

    10/05/2026

    NFT Ltd. Sets 1-for-80 Reverse Split as May 18 Trading Shift Nears

    09/05/2026

    Dogecoin Bigger Than Entire NFT Market by 800%

    08/05/2026

    Reid Hoffman says NFTs may make a comeback as AI agents strain online identity

    07/05/2026

    Warren Buffett warns on crypto speculation

    10/05/2026

    53% of XRP transactions are payments, study shows

    10/05/2026

    Machi Big Brother Begins Recovery with $2M Profit in 24 Hours

    10/05/2026

    Bitcoin Price Teeters on Iran Talks as Geopolitics and Options Flows Trap Price in Narrow Range

    10/05/2026
  • Blockchain

    RAX Finance Joins Forces with ChainAware.ai to Build RWA-Powered AI Economy

    10/05/2026

    Lily Liu says Solana is building the payment rails for the ‘AI machine economy’

    10/05/2026

    Prediction Markets Depend on Oracle Integrity

    10/05/2026

    Anchorage, Google Cloud launch agentic banking

    10/05/2026

    Kelp DAO migrates to Chainlink CCIP after accusing LayerZero of security failure

    10/05/2026
  • DeFi

    Stakee ($Stakee) Leads the Top DeFi Projects by Weekly TVL Growth

    10/05/2026

    F2Pool Founder Chun Wang Moves $17.27M in ETH From Binance to DeFi Protocol Spark

    10/05/2026

    Aave $71M Recovery Plan Takes A Dramatic Turn

    10/05/2026

    How DeFi is changing the financial landscape for Latin Americans

    10/05/2026

    Aave Has Released a New Update Regarding the $290 Million Hacking Incident

    10/05/2026
  • Metaverse

    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

    Mark Zuckerberg’s Meta launches new AI initiative after metaverse retreat

    25/03/2026

    Meta partners with Arm to develop new CPUs for AI deployments

    24/03/2026
  • Regulation

    Warren Buffett warns on crypto speculation

    10/05/2026

    Cerebras targets up to $3.5B in U.S. IPO to challenge Nvidia

    10/05/2026

    Fed’s Williams says the U.S. economy is entering a more uncertain phase

    10/05/2026

    Prediction markets entering institutional era after first block trade — Bernstein

    10/05/2026

    Applied Digital lines up $300M bridge loan to accelerate AI data center build

    10/05/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Machi Big Brother Begins Recovery with $2M Profit in 24 Hours

    10/05/2026

    NHL and MLB Sign With Polymarket and Kalshi as Their Unions Ask CFTC to Intervene

    10/05/2026

    Coinbase opens crypto access for Australia’s self-managed retirement funds

    10/05/2026

    B.AI and BitMart Shake Hands to Boost AI Crypto Liquidity

    10/05/2026

    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

    MetaOne Joins MetYa to Boost SocialFi Gaming with Exclusive Rewards

    10/05/2026

    Quantra and FishWar Unite to Advance AI-Powered Web3 Gaming on Sei

    10/05/2026

    Miniverse Partners with UNIPLAY to Expand CoFi Across DeFi and GameFi

    09/05/2026

    Top NFT games in 2026 shift from speculation to real ownership risks

    08/05/2026

    BTC miners signal commitment to AI pivot in latest quarterly disclosures

    10/05/2026

    Bitcoin Mining Pool Giants Foundry, Antpool and F2pool Signal Stratum V2 Shift

    10/05/2026

    Gustavo Petro Warns Fossil-Fueled Crypto Mining Will Trigger ‘Climate Collapse’

    10/05/2026

    Kazakhstan plans $1.9B data center amid power shortages

    10/05/2026

    Rwanda swats Bybit’s P2P platform offering franc-to-crypto trading

    10/05/2026

    CFTC Reviews Reporting Rules as Prediction Markets Enter Commodities

    09/05/2026

    Why the Regulator Sees Your Compliance Team as a Single Brain

    09/05/2026

    Crypto industry backs CLARITY Act yield compromise, pushes Senate Banking for markup

    09/05/2026

    Warren Buffett warns on crypto speculation

    10/05/2026

    53% of XRP transactions are payments, study shows

    10/05/2026

    Machi Big Brother Begins Recovery with $2M Profit in 24 Hours

    10/05/2026

    Bitcoin Price Teeters on Iran Talks as Geopolitics and Options Flows Trap Price in Narrow Range

    10/05/2026
  • 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

Rwanda swats Bybit’s P2P platform offering franc-to-crypto trading

10/05/2026

CFTC Reviews Reporting Rules as Prediction Markets Enter Commodities

09/05/2026

Why the Regulator Sees Your Compliance Team as a Single Brain

09/05/2026

Crypto industry backs CLARITY Act yield compromise, pushes Senate Banking for markup

09/05/2026
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

Warren Buffett warns on crypto speculation

10/05/2026

53% of XRP transactions are payments, study shows

10/05/2026

Machi Big Brother Begins Recovery with $2M Profit in 24 Hours

10/05/2026
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.