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

Kraken parent Payward cuts 150 staff, streamlining business ahead of planned IPO

02/06/2026

Suspected Matrixport Address Dumps Another $4.3 Million in HYPE Tokens

02/06/2026

GMATRIXS Taps GamePad to Boost Web3 Gaming and DeFi Infrastructure

02/06/2026
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

    BTC Momentum Fades as Bears Target Key $76K Support

    02/06/2026

    Satoshi-era Bitcoin miner transfers $203M in BTC to OTC desks

    02/06/2026

    Expert Analysis on How Bitcoin Price Will Behave This Week and In June

    02/06/2026

    Bitcoin Price Under Pressure as Demand Falls to Most Bearish Level in 2026

    02/06/2026

    Ethereum treasury firms lean on staking as ETF pressure builds: Report

    01/06/2026

    Rally Next or Further Downside?

    01/06/2026

    Vitalik Buterin pushes privacy and security as EF priorities while Aave’s Kulechov bets on revenue

    01/06/2026

    Why Vitalik’s Vision for Ethereum Is Bearish for ETH, According to Dragonfly Capital

    01/06/2026

    Suspected Matrixport Address Dumps Another $4.3 Million in HYPE Tokens

    02/06/2026

    MegaETH Foundation completes first MEGA buyback

    02/06/2026

    XRP Expands Institutional Footprint with Dubai License, UBS ETF Exposure, and JPM-Mastercard Pilot

    02/06/2026

    What Is RLUSD? Ripple’s Stablecoin Explained

    02/06/2026

    Cripco Joins Minicoin, Fueling Speculation IPX Is Exiting NFT Business

    28/05/2026

    Tokenized Pokémon Card Sales Surge to Record $7.4 Million in First Week of May

    27/05/2026

    Pudgy Penguins Deepens Ties With Manchester City in Expanded Partnership

    20/05/2026

    We’re building one app for NFTs, meme coins, perps, and major cryptos

    20/05/2026

    Kraken parent Payward cuts 150 staff, streamlining business ahead of planned IPO

    02/06/2026

    Suspected Matrixport Address Dumps Another $4.3 Million in HYPE Tokens

    02/06/2026

    GMATRIXS Taps GamePad to Boost Web3 Gaming and DeFi Infrastructure

    02/06/2026

    Base says agent payments reached 3.1 million x402 transactions in 30 days

    02/06/2026
  • Blockchain

    World Partners with Thirty Seconds to Mars for Orb-Verified ‘Humans Only Ticket’ System

    02/06/2026

    Origins Network Partners with PinGo AI to Revolutionize Decentralized Compute Infrastructure for AI Developers

    02/06/2026

    XRP Reaches $400M in Tokenized RWAs Faster Than Ethereum

    02/06/2026

    Solayer Launches Margin Trade Testnet

    02/06/2026

    Base’s state update system went down and nobody noticed

    02/06/2026
  • DeFi

    Aave overhauls listing standards after $230 Million rsETH exploit exposed bridge risks

    02/06/2026

    UTXO Joins Stacks Bitcoin Staking

    02/06/2026

    Ethereum’s Vitalik Buterin is rethinking how DeFi handles market crashes

    02/06/2026

    Four hacks, three outages, one warning

    02/06/2026

    XRP Ledger’s new proposal blocks the flash loan attacks costing DeFi hundreds of millions

    01/06/2026
  • 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

    Kraken parent Payward cuts 150 staff, streamlining business ahead of planned IPO

    02/06/2026

    Saudi Arabia is tokenizing its multi-trillion dollar economy to protect its wealth from global shocks

    02/06/2026

    A Cryptocurrency Project Has Decided to Shut Down for Good

    02/06/2026

    How Will This Affect the Price of Bitcoin?

    02/06/2026

    SpaceX targets June 11 IPO pricing, picks Nasdaq for historic market debut

    02/06/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Base says agent payments reached 3.1 million x402 transactions in 30 days

    02/06/2026

    Lighter shifts strategy, partners with Insilico to attract professional traders and deepen liquidity

    02/06/2026

    Coinbase reports equities outperform crypto amid strong earnings data

    02/06/2026

    MEXC launches RealStocks for US stock trading on NYSE and NASDAQ

    02/06/2026

    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

    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

    GMatrixs Partners With InsightX To Advance GameFi User Experiences With AI-Powered Web3 Prediction Market Ecosystem

    27/05/2026

    Illegal Crypto Mining Farm With 10,000 Units Uncovered in Russia’s Ural Region

    02/06/2026

    Bitfufu Reports Holding 1,794 BTC as Q1 Revenue Declines 6.8%

    02/06/2026

    Georgia targets illegal crypto mining with new electricity meters in Mestia

    02/06/2026

    Hive Digital Sells 331 BTC in Q1, Reducing Treasury to 150 Bitcoin

    02/06/2026

    How CLARITY Act survived a chaotic Senate markup after Warren, Banks and Democrats tried to slow it down

    02/06/2026

    How the US Crypto Framework Stacks Up Against MiCA, MAS, and VARA

    02/06/2026

    XRP beat bitcoin gains as CLARITY Act advanced, but a real bullrun still needs Congress

    02/06/2026

    The U.S. Senate Banking Committee Shared the Ripple CEO’s Remarks in a Press Release

    02/06/2026

    Kraken parent Payward cuts 150 staff, streamlining business ahead of planned IPO

    02/06/2026

    Suspected Matrixport Address Dumps Another $4.3 Million in HYPE Tokens

    02/06/2026

    GMATRIXS Taps GamePad to Boost Web3 Gaming and DeFi Infrastructure

    02/06/2026

    Base says agent payments reached 3.1 million x402 transactions in 30 days

    02/06/2026
  • 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

How CLARITY Act survived a chaotic Senate markup after Warren, Banks and Democrats tried to slow it down

02/06/2026

How the US Crypto Framework Stacks Up Against MiCA, MAS, and VARA

02/06/2026

XRP beat bitcoin gains as CLARITY Act advanced, but a real bullrun still needs Congress

02/06/2026

The U.S. Senate Banking Committee Shared the Ripple CEO’s Remarks in a Press Release

02/06/2026
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

Kraken parent Payward cuts 150 staff, streamlining business ahead of planned IPO

02/06/2026

Suspected Matrixport Address Dumps Another $4.3 Million in HYPE Tokens

02/06/2026

GMATRIXS Taps GamePad to Boost Web3 Gaming and DeFi Infrastructure

02/06/2026
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.