Roman Sterlingov, the person behind the crypto mixer Bitcoin Fog, is contesting a possible 30-year jail sentence following his conviction on a number of cash laundering expenses.
In a 37-page sentencing memorandum submitted to the US District Courtroom for the District of Columbia, Sterlingov’s protection group contends that the beneficial sentences of 30 and 20 years by the prosecution and Probation Workplace, respectively, “vastly exceed” the penalties imposed in similar cases.
The protection argued that these suggestions are disproportionately excessive because of the “cumulative effect” of assorted enhancements that punish totally different facets of the identical conduct — particularly, operating a large-scale cash laundering operation.
Laundering conviction
Sterlingov was convicted earlier this 12 months on a number of counts associated to working Bitcoin Fog, a service that allegedly facilitated the laundering of over $47 million in felony proceeds.
The federal government has portrayed him as a central determine in a complicated scheme that allowed customers to anonymize Bitcoin transactions, successfully making it troublesome for regulation enforcement to hint unlawful actions similar to drug trafficking and different felony enterprises.
Prosecutors alleged that Bitcoin Fog, which Sterlingov operated from 2011 to 2021, was used to launder roughly $400 million in Bitcoin related to unlawful actions similar to drug trafficking, identification theft, and cybercrime.
Choose Randolph Moss, who’s overseeing the case, initially scheduled Sterlingov’s sentencing for Aug. 21. Nonetheless, the courtroom will now first hear arguments concerning the federal government’s efforts to grab property tied to Bitcoin Fog, together with 1,354 Bitcoin which have remained dormant since 2012 and a possible $395 million monetary judgment.
Circumstantial proof
Nonetheless, Sterlingov’s attorneys argued that the case in opposition to him relied closely on circumstantial proof, noting that key components such because the Bitcoin Fog server, server logs, non-public keys, or ledger had been by no means entered into proof in the course of the trial.
The protection emphasised that he has no prior felony historical past and has led an in any other case exemplary life. It additionally asserted that the jury’s verdict aligns extra with aiding and abetting fairly than straight operating the Bitcoin Fog operation, suggesting that Sterlingov’s function was much less central than prosecutors have portrayed.
The protection additional argued that the sentencing pointers, that are closely influenced by the greenback quantities concerned within the offense, don’t precisely mirror Sterlingov’s culpability.
It contended that the rules’ concentrate on the worth of the laundered funds is misplaced on this case, because it fails to account for the truth that Sterlingov didn’t personally revenue from the transactions and that lots of the funds handed via Bitcoin Fog with out his direct involvement.
