- Roman Sterlingov’s defense argues that a 30-year sentence for operating Bitcoin Fog is excessive compared to similar cases.
- Sterlingov’s legal team challenges the prosecution’s evidence, highlighting the lack of critical elements like server logs and keys.
- The defense argues sentencing guidelines based on dollar amounts don’t reflect Sterlingov’s role or lack of personal profit.
The owner of Bitcoin Fog, Roman Sterlingov, is attempting to avoid a possible 30-year jail term. In comparison to other cases of a similar kind, his defense contends that the punishment suggested by the prosecution and Probation Office is disproportionate. On several counts of money laundering connected to Bitcoin Fog, a service that was allegedly used to launder over $47 million, Sterlingov was found guilty.
Defense Argues for Reduced Sentence
In a 37-page sentencing memorandum submitted to the US District Court for the District of Columbia, Sterlingov’s legal team asserts that the recommended sentences of 30 and 20 years are disproportionately high.
They argue that these recommendations result from the “cumulative effect” of enhancements punishing different aspects of the same conduct. Specifically, they criticize the enhancements for running a large-scale money laundering operation.
The prosecution has portrayed Sterlingov as a key figure in a sophisticated scheme enabling users to anonymize Bitcoin transactions. This allegedly hindered law enforcement efforts to trace illegal activities, such as drug trafficking. Bitcoin Fog, operated from 2011 to 2021, is accused of laundering approximately $400 million in Bitcoin-related to criminal activities like identity theft and cybercrime.
Judge Randolph Moss had initially set Sterlingov’s sentencing for August 21. However, the court will first address the government’s bid to seize assets connected to Bitcoin Fog. This includes 1,354 Bitcoins that have been dormant since 2012 and a potential $395 million financial judgment.
Sterlingov’s Defense Challenges the Evidence
Sterlingov’s defence contends that the case against him relies heavily on circumstantial evidence. Notably, critical elements like the Bitcoin Fog server, server logs, private keys, and ledger were never introduced as evidence during the trial. They emphasize that Sterlingov has no prior criminal history and has led an otherwise exemplary life.
Moreover, the defence argues that the sentencing guidelines, heavily influenced by the dollar amounts involved, do not accurately reflect Sterlingov’s role. They assert that the focus on the value of laundered funds overlooks the fact that Sterlingov did not personally profit from these transactions.
In related news, Tornado Cash co-founder Roman Storm faces charges in the US for his role with a similar crypto mixing service. Additionally, Alexey Pertsev, another developer, is appealing a five-year sentence for money laundering charges.
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