A London resident reportedly caught with bitcoins worth over .3 billion has been convicted for entering into a money laundering arrangement. The woman specialized in converting digital assets into physical assets, such as multimillion-dollar houses and jewelry. Converting Bitcoin to Physical Assets A British woman, found in possession of bitcoins currently valued at over .3 […]
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Washington Court Convicts Bitcoin Fog Founder of Aiding Darknet Drug Trade Money Laundering
In a recent development, the founder of “Bitcoin Fog,” a cryptocurrency-mixing service, was found guilty by a federal jury in Washington of helping to launder tens of millions of dollars from darknet markets notorious for illegal drug sales.
Multi-Million Dollar Crypto Money Laundering Case
According to a Bloomberg report, Roman Sterlingov, a 35-year-old Russian-Swiss national, was convicted by a jury on multiple counts, including conspiring to money launder, money laundering, and failing to register a money transmitting service. The prosecution argued that Bitcoin Fog facilitated over 0 million in untraceable transactions, with some funds originating from illicit markets.
The verdict not only marks another victory for the United States in its crackdown on crypto criminals but also sheds light on the role of Chainalysis, a Wall Street-backed firm utilized by the Justice Department and Treasury Department to trace cryptocurrency flows in money laundering cases. The defense raised concerns about the reliability of Chainalysis during the trial, questioning its methods and credibility.
During the month-long trial, prosecutors presented evidence showing how they tracked the flow of crypto from darknet markets through Bitcoin Fog, which they claimed Sterlingov operated. The government also relied on testimony from other crypto criminals, including Ilya Lichtenstein and Larry Harmon, who testified about using mixers for money laundering purposes.
Bitcoin Fog Founder Maintains Innocence Despite Conviction
Sterlingov, who has consistently denied running Bitcoin Fog, testified that he allegedly worked in information technology and helped clients create domain names during his employment at a marketing and web firm.
Furthermore, Sterlingov claimed that he did not recall creating the Bitcoin Fog domain name or engaging in certain transactions referenced by the government.
Defense attorney Tor Ekeland also claimed that there was no concrete evidence linking Sterlingov to the operation of Bitcoin Fog, emphasizing a lack of eyewitness accounts or server logs.
Ekeland also questioned the logic of using a secretive multi-step process to fund Bitcoin Fog when the initial transaction originated from an account registered in Sterlingov’s name. Sterlingov now faces a potential prison sentence of up to 20 years for the most serious charges.
As of the latest update, Bitcoin, the largest cryptocurrency in the market, experienced a minor 2% correction, briefly dipping to ,500 and temporarily falling below the significant ,000 milestone. However, the cryptocurrency swiftly rebounded and is currently trading at ,400 at the time of writing.
Despite this temporary correction, Bitcoin has still exhibited notable gains of 11%, 25%, and 48% over the past seven, fourteen, and thirty days, respectively. These substantial increases propelled BTC to achieve its recent all-time high (ATH) of ,000, which was reached on Monday.
Featured image from Shutterstock, chart from TradingView.com
Nigerian Court Convicts P2P Crypto Trader Accused of Operating a Pig Butchering Scam
A Nigerian court recently convicted and fined a peer-to-peer (P2P) crypto trader accused of running a pig butchering scam. According to the Economic and Financial Crimes Commission, the crypto trader’s activities were “contrary to and punishable under the Cybercrimes (Prohibition etc.) Act, 2015.”
Offense ‘Bordering on Cybercrimes’
A Nigerian court recently convicted a peer-to-peer cryptocurrency trader accused by authorities of committing a “computer related fraud.” In his ruling, Justice Nicholas Oweibo of the Federal High Court ruled that the accused Lawrence Success Karinate has to pay a fine equivalent to 7.90 or N200,000.
According to a statement issued by the anti-corruption body, the Economic and Financial Crimes Commission (EFCC), Karinate faced one charge “bordering on cybercrimes.” The EFCC, which prosecuted the case, said the crime is in contravention of Section 22(2)(b) of the Cybercrimes (Prohibition etc.) Act, 2015.
The P2P Trader’s Pig Butchering Scam
Detailing how the crypto trader ran what the EFCC calls a pig butchering scam, the anti-corruption body’s said:
“That you, Success Lawrence Karinate, sometime in 2023, within the jurisdiction of this Honourable Court, with intent to defraud, fraudulently held out yourself on social media platforms, as a female, bearing the name ‘Jessie Randall’, a fashion influencer, to unsuspecting members of the public, with intent to gain advantage for yourself and you thereby committed an offence, contrary to and punishable under Section 22(2)(b) of the Cybercrimes (Prohibition etc.) Act, 2015.”
Karinate, who pleaded guilty to the charge, was arrested by EFCC operatives in the Lekki area of Lagos State on May 26, 2023. At the time of his arrest, the operatives recovered a mobile phone which the crypto trader used to perpetrate the scam. According to the EFCC he admitted to gaining ,000 from the scam.
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