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

inverted cup & handle points to a crash amid ETF outflows

10/06/2026

China’s April PPI rises 2.8%, CPI increases 1.2% year-on-year, ending three-year deflation streak

10/06/2026

Ripple CTO Emeritus Shares Early Story and AI Vision for XRP Ledger

10/06/2026
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

    Japan Bitcoin ETF plan ready to open route into household savings

    10/06/2026

    Weekly Close at $78,500 Will Define Next Move

    10/06/2026

    is today a positive day?

    10/06/2026

    The U.S. can’t lose the bitcoin race to China

    10/06/2026

    inverted cup & handle points to a crash amid ETF outflows

    10/06/2026

    This Key Level Could Trigger More Downtrend

    10/06/2026

    Assessing whether whale demand can absorb Ethereum’s $168mln ETF exodus

    10/06/2026

    Ethereum Foundation cuts and departures aren’t a crisis, Joe Lubin says

    10/06/2026

    Ripple CTO Emeritus Shares Early Story and AI Vision for XRP Ledger

    10/06/2026

    Shytoshi Kusama Hints at Next Move in New SHIB Update

    10/06/2026

    Zcash patches critical flaws as crypto hacks hit $651M in one month

    10/06/2026

    Neptune Built What Monero Hasn’t—Should Investors Care?

    10/06/2026

    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

    White hats rescue $500K in NFTs after Flooring exploit

    08/06/2026

    inverted cup & handle points to a crash amid ETF outflows

    10/06/2026

    China’s April PPI rises 2.8%, CPI increases 1.2% year-on-year, ending three-year deflation streak

    10/06/2026

    Ripple CTO Emeritus Shares Early Story and AI Vision for XRP Ledger

    10/06/2026

    Crossmint enables Visa card payments for AI agents and autonomous commerce

    10/06/2026
  • Blockchain

    Cardano powers Brazil Olympic tech push with blockchain and AI

    08/06/2026

    M3 DAO and FISH Join Forces to Scale Community-Driven Poker Across Web3

    08/06/2026

    0x Opens Cross-Chain API to All Developers with 12 Bridge Partners on Day One

    08/06/2026

    JPMorgan and rivals back tokenized deposit network for 2027 launch

    08/06/2026

    Anome Protocol and 4AIBSC Partner to Scale AI-Powered Applications in Web3

    08/06/2026
  • DeFi

    Aave chief defends protocol’s ‘resilience’ after $8.45 billion bank run

    10/06/2026

    1inch releases ‘reDeFine Money,’ the first book to tell DeFi’s story through its founders

    09/06/2026

    DeFi Development Co-Founder Parker White Steps Down, Shifts Focus to Apyx

    09/06/2026

    Ethena lands Janus Henderson backing as asset manager invests in ENA, eyes USDe distribution

    09/06/2026

    DeFi lender Morpho nears $2B valuation after $175M raise led by Paradigm and a16z

    09/06/2026
  • Metaverse

    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

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

    25/03/2026
  • Regulation

    China’s April PPI rises 2.8%, CPI increases 1.2% year-on-year, ending three-year deflation streak

    10/06/2026

    Beijing confirms Trump state visit and Xi summit for May 14-15

    10/06/2026

    Why Is Strategy Valuable? CEO Says MSTR Is More Than Its BTC Holdings

    10/06/2026

    Ex-Goldman Strategist Predicts a Massive Breakout for the Brazilian Real

    10/06/2026

    Private-credit firms report decline in returns amid Fed rate cuts

    10/06/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Crossmint enables Visa card payments for AI agents and autonomous commerce

    10/06/2026

    Robinhood to Unveil New Crypto Financial Product in London on July 1

    10/06/2026

    How Do You Make Money Through Hyperliquid’s Builder Program?

    10/06/2026

    0xPPL, Pingu announce shutdown plans as crypto winter persists

    10/06/2026

    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

    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

    Could Grand Theft VI be the first ‘crypto native’ video game in history? The internet weighs in

    27/05/2026

    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

    Hut 8 Prices $4.25B Notes to Build 352MW Texas AI Data Center

    07/06/2026

    Trump administration prepares AI security order for US agencies

    10/06/2026

    US Treasury targets 10 entities aiding Iran’s military efforts

    10/06/2026

    Russia and Ukraine agree to three-day truce and prisoner exchange around Victory Day

    10/06/2026

    Trump administration appeals court ruling that blocked IEEPA tariffs

    09/06/2026

    inverted cup & handle points to a crash amid ETF outflows

    10/06/2026

    China’s April PPI rises 2.8%, CPI increases 1.2% year-on-year, ending three-year deflation streak

    10/06/2026

    Ripple CTO Emeritus Shares Early Story and AI Vision for XRP Ledger

    10/06/2026

    Crossmint enables Visa card payments for AI agents and autonomous commerce

    10/06/2026
  • 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

Trump administration prepares AI security order for US agencies

10/06/2026

US Treasury targets 10 entities aiding Iran’s military efforts

10/06/2026

Russia and Ukraine agree to three-day truce and prisoner exchange around Victory Day

10/06/2026

Trump administration appeals court ruling that blocked IEEPA tariffs

09/06/2026
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

inverted cup & handle points to a crash amid ETF outflows

10/06/2026

China’s April PPI rises 2.8%, CPI increases 1.2% year-on-year, ending three-year deflation streak

10/06/2026

Ripple CTO Emeritus Shares Early Story and AI Vision for XRP Ledger

10/06/2026
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.