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

Crypto expert Plan B warns Bitcoin could fall below $54k

06/05/2026

State Street says institutions want improved blockchain security in wake of recent DeFi attacks

06/05/2026

Trading expert issues new price target for Ethereum

06/05/2026
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

    Crypto expert Plan B warns Bitcoin could fall below $54k

    06/05/2026

    Bitcoin Reclaims $69,000 as US-Iran De-escalation Hopes Spark Global Market Rally

    06/05/2026

    Bitcoin breaks from M2 liquidity trend as dollar strength overrides global money growth

    06/05/2026

    Crypto markets set Bitcoin’s best month for 2026

    06/05/2026

    Trading expert issues new price target for Ethereum

    06/05/2026

    Ethereum Price Recovery at Risk as Whale Profit-Taking Hits Market

    06/05/2026

    Find Out What Investors Are Waiting For

    06/05/2026

    Is BitMine really Ethereum’s Strategy – Or something entirely different?

    06/05/2026

    XDC price holds near $0.032 as enterprise RWA narrative deepens

    06/05/2026

    Canton price edges higher as Visa super validator news lifts RWA L1

    06/05/2026

    Avalanche price holds near $9.70 as U.S. ‘digital commodity’ ruling meets subnet growth

    06/05/2026

    Ripple Keeps Burning RLUSD. What’s Happening?

    06/05/2026

    Ethereum and Bitcoin Lead NFT Market, Known Origin #30101 Tops Weekly Sales

    05/05/2026

    The only rally during Bitcoin 2026 was Ethereum NFTs

    30/04/2026

    Are NFTs signaling a market shift? THESE indicators say yes

    28/04/2026

    Bored Ape NFT prices jump 81 percent as sales drop

    28/04/2026

    Crypto expert Plan B warns Bitcoin could fall below $54k

    06/05/2026

    State Street says institutions want improved blockchain security in wake of recent DeFi attacks

    06/05/2026

    Trading expert issues new price target for Ethereum

    06/05/2026

    $875B in property debt is due soon — and regional banks may be the weak link Bitcoin is watching

    06/05/2026
  • Blockchain

    The world’s entire economy will be tokenized, says Consensys’ Joseph Lubin

    06/05/2026

    Season 1 Is Live. Here Is How to Play It.

    06/05/2026

    R3E Network publishes exploratory multi-L2 architecture, smart contract language for Neo

    06/05/2026

    Cosmos-first Leap Wallet to cease operations on May 28, users urged to migrate

    05/05/2026

    UAE freezone implements first blockchain registration system for an agentic AI economy

    04/05/2026
  • DeFi

    State Street says institutions want improved blockchain security in wake of recent DeFi attacks

    06/05/2026

    Marscat And XBIT DEX Join Forces To Advance DeFi Utility And Trading Experience

    05/05/2026

    DeFi Development launches $200M ATM to keep buying Solana

    05/05/2026

    COTI MetaMask Snap Upgrade Adds Privacy Features

    05/05/2026

    DDEX And CottoniaAI Collaborate To Power Scalable AI-Driven DeFi Trading Systems With Decentralized Cloud Computing

    05/05/2026
  • Metaverse

    ‘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

    Land values capitulate as $24M metaverse plot collapses to just $9,000

    20/03/2026
  • Regulation

    $875B in property debt is due soon — and regional banks may be the weak link Bitcoin is watching

    06/05/2026

    Coinbase says new U.S. tax-reporting rules for crypto are cluttered, confusing

    06/05/2026

    China Continues to Pursue Yuan Internationalization for Cross Border Payments

    06/05/2026

    South African Economist Flags Authoritarian Risks in CBDCs

    06/05/2026

    Nexo Expands to Argentina to Redefine Digital Dollar Savings

    06/05/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Machi Big Brother Opens $86 Million Bitcoin and Ethereum Long After Losing $73 Million Over Six Months

    06/05/2026

    MiCA-licensed Banking Circle joins bank stablecoin settlement race in Europe

    06/05/2026

    Bitcoin Exchange Binance Lists Numerous Altcoin Trading Pairs! Here Are the Details

    06/05/2026

    Coinbase Announces It Has Delisted an “Already Dead” Altcoin

    06/05/2026

    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

    PlayZap Games Joins REI Network to Accelerate Scalable GameFi Transformation

    05/05/2026

    UXLINK and FishWar Partner to Redefine AI-Powered Social Gaming on Sei Network

    30/04/2026

    B3.Fun Partners With Neobank Veera To Supercharge Web3 Gaming Engagement With RWA-DeFi Applications

    30/04/2026

    B.AI and CROSS Transform the Future of AI in Web3 Gaming

    28/04/2026

    K Wave Media scraps massive bitcoin treasury plan to redirect $485 million to AI

    05/05/2026

    Texas Residents Sue MARA Holdings Over Bitcoin Mining Noise

    05/05/2026

    Hut 8 swaps Coinbase loan for cheaper FalconX deal, slashing borrowing costs as it bets big on AI

    05/05/2026

    New Bill Could Pause Crypto Mining in Michigan

    05/05/2026

    CLARITY Act Misses April Deadline — What That Means for the Industry

    04/05/2026

    SEC, CFTC Chiefs Signal ‘New Day’ for U.S. Onshore Crypto, Tokenization and Future‑Proof Rules

    04/05/2026

    Lawmakers Warn Crypto Clarity Will Decide U.S. Leadership as 2026 Election Looms

    04/05/2026

    House Republicans Warn That the America’s Bitcoin Weakness Will Benefit China

    04/05/2026

    Crypto expert Plan B warns Bitcoin could fall below $54k

    06/05/2026

    State Street says institutions want improved blockchain security in wake of recent DeFi attacks

    06/05/2026

    Trading expert issues new price target for Ethereum

    06/05/2026

    $875B in property debt is due soon — and regional banks may be the weak link Bitcoin is watching

    06/05/2026
  • 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

Related Posts

CLARITY Act Misses April Deadline — What That Means for the Industry

04/05/2026

SEC, CFTC Chiefs Signal ‘New Day’ for U.S. Onshore Crypto, Tokenization and Future‑Proof Rules

04/05/2026

Lawmakers Warn Crypto Clarity Will Decide U.S. Leadership as 2026 Election Looms

04/05/2026

House Republicans Warn That the America’s Bitcoin Weakness Will Benefit China

04/05/2026
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

Crypto expert Plan B warns Bitcoin could fall below $54k

06/05/2026

State Street says institutions want improved blockchain security in wake of recent DeFi attacks

06/05/2026

Trading expert issues new price target for Ethereum

06/05/2026
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.