Roman Sterlingov, the person behind cryptocurrency mixer BitcoinFog, is combating his potential 30-year jail sentence after being convicted on a number of cash laundering fees.

In a 37-page sentencing memorandum filed within the U.S. District Courtroom for the District of Columbia, Sterlingov's attorneys argued that the 30-year and 20-year sentences sought by prosecutors and the probation division, respectively, “considerably exceed” sentences imposed in comparable circumstances.

The protection argued that the suggestions have been disproportionately excessive because of the “cumulative impact” of various weights that punished the identical conduct, particularly completely different features of the operation of a large-scale cash laundering operation.

Cash laundering conviction

Sterlingov was convicted earlier this yr on a number of fees associated to working BitcoinFog, a service that allegedly facilitated the laundering of greater than $47 million in felony proceeds.

The federal government portrays him because the central determine in a classy scheme to anonymize Bitcoin transactions, making it successfully tougher for legislation enforcement to trace criminal activity reminiscent of drug trafficking and different felony enterprises.

Prosecutors alleged that Bitcoin Fog, which Sterlingov ran from 2011 to 2021, was used to launder roughly $400 million value of Bitcoin linked to unlawful actions, together with drug trafficking, id theft and cybercrime.

Choose Randolph Moss, who’s presiding over the case, had initially scheduled Sterlingov's sentencing for August 21. Nevertheless, the court docket will first hear arguments relating to the federal government's efforts to grab property associated to Bitcoin Fog, together with 1,354 bitcoins which were dormant since 2012, and a doable financial judgment of $395 million.

Circumstantial proof

Nevertheless, Sterlingov's attorneys famous that the case towards him relied closely on circumstantial proof, and that key parts reminiscent of BitcoinFog's servers, server logs, non-public keys and ledgers weren’t launched into proof throughout the trial.

The protection confused that Sterlingov has no felony report and has in any other case led an exemplary life, and argued that the jury's verdict was nearer to aiding and abetting fairly than straight working BitcoinFog, suggesting Sterlingov's position was much less vital than the prosecution had made out.

The protection additional argued that the sentencing tips have been closely influenced by the amount of cash concerned within the crimes and didn’t precisely replicate Sterlingov's guilt.

The corporate argued that the rules’ concentrate on the worth of the laundered funds on this case is misplaced and fails to have in mind the truth that Sterlingov didn’t personally revenue from the transactions and that a lot of the funds handed by way of BitcoinFog with out his direct involvement.