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Bitcoin Fog Founder Sentenced To 12.5 Years for $400M Crypto Laundering Scheme

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4 days ago

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Bitcoin Fog founder Roman Sterlingov has been sentenced to 12.5 years in prison for operating a major cryptocurrency mixing service that laundered over $400 million in criminal proceeds. 

The Washington federal court ruling was handed down by U.S. District Judge Randolph Moss, who also ordered the forfeiture of $395 million in assets, including seized cryptocurrency and Sterlingov’s interest in a Bitcoin wallet with over $103 million in Bitcoin.

Bitcoin Fog Founder Sentenced To 12.5 Years

Roman Sterlingov, a Russian-Swiss national, was convicted of multiple charges related to operating Bitcoin Fog, a cryptocurrency “mixer” that obscured the origins of digital currency transactions. The prosecution stated that Bitcoin Fog was a convenient way for criminals to launder the money obtained from criminal activities, including those related to narcotics on the darknet markets.

After a jury trial in March, Sterlingov was found guilty of conspiring to launder money, money laundering, and operating an unregistered money transmitting business.

Bitcoin Fog allowed users to combine or “mix” digital assets, making it harder to trace individual transactions. Prosecutors said that Sterlingov’s service functioned for approximately ten years and had aimed to enable untraceable transactions to support money laundering activities on an extensive scale.

Principal Deputy Assistant Attorney General Nicole M. Argentieri said that Roman Sterlingov “laundered over $400 million in criminal proceeds through Bitcoin Fog” and noted that the sentence demonstrates the Justice Department’s efforts to prosecute those who facilitate criminal conduct.

Judge Considers Deterrence in Sentencing

Judge Randolph Moss imposed a 12.5-year sentence, which was substantially less than the 30 years requested by the prosecution for the Bitcoin Fog founder. Prosecutors had argued for a severe penalty due to the prolonged and extensive nature of the scheme. “This is criminal activity of a staggering scale over a prolonged period of time,” said prosecutor Christopher Brown. 

Nonetheless, Judge Moss said that a life sentence is excessive given the offense, although he emphasized the need for a significant deterrent in the cryptocurrency sector given that it is often difficult to follow the funds.

Roman Sterlingov said during the sentencing hearing, “I am sorry for any harm that may have come from my actions.” The defense had requested the judge to impose a maximum of 7.5 years saying there was no direct proof of Sterlingov contributing to the running of the Bitcoin Fog. Concurrently, Sterlingov’s attorney, Tor Ekeland, argued that there were no service logs or eyewitness statements that would have placed his client in control of the mixing service.

Recent Sentences In The Crypto Industry

The sentencing of Sterlingov comes amid scrutiny of the crypto industry, as other high-profile cases involving fraud and money laundering unfold.

Recently, Caroline Ellison, former CEO of Alameda Research, received a two-year prison sentence for her role in the FTX fraud, which defrauded investors out of billions. 

In that case, key witnesses, including Ellison and former FTX engineer Nishad Singh, received lighter sentences or avoided prison time by cooperating with prosecutors against FTX founder Sam Bankman-Fried.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Cardano Founder Teases Potential Partnership With Ripple

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2 hours ago

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November 12, 2024

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Cardano founder Charles Hoskinson has hinted at a potential collaboration with Ripple, sparking excitement across the crypto community.

In a recent post on X (formerly Twitter), Hoskinson praised Ripple CEO Brad Garlinghouse, calling him a “great CEO” and describing their interaction as “extremely collaborative.” This public exchange has fueled speculation that Cardano and Ripple might explore a strategic partnership.

Will Cardano Founder Partner With Ripple CEO?

Cardano founder Charles Hoskinson’s recent comments align with growing calls for collaboration in the cryptocurrency industry.

In his post, Ripple CEO Brad Garlinghouse echoed this sentiment, urging the crypto community to “come together” to advocate for a “level playing field” and regulatory clarity. He emphasized the need for clear “rules of the road” to foster a fair environment for all crypto assets and companies. “A rising tide lifts all boats,” Garlinghouse wrote, suggesting that a unified crypto industry could benefit the entire ecosystem.

This message of unity comes at a time when regulatory pressures and market challenges continue to affect the crypto sector. Ripple, in particular, has been embroiled in a long-standing legal battle with the U.S. Securities and Exchange Commission (SEC), a case that many believe could set an important precedent for the industry. With Hoskinson’s endorsement and Garlinghouse’s call for collaboration, the potential Ripple-Cardano partnership might aim to strengthen both companies’ positions in the market and support regulatory reform efforts.

This Is A Breaking News, Please Check Back For More

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Robinhood CEO Vlad Tenev Gives Take on Bitcoin Rally and Donald Trump’s Impact

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8 hours ago

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November 12, 2024

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Robinhood CEO Vlad Tenev gave his opinion on the recent Bitcoin price rally to as high as $90,000 and how US President-elect Donald Trump has contributed to this development. Tenev also suggested that the crypto industry in the US could begin to thrive now with Trump as the next president.

Robinhood CEO Comments On Bitcoin Rally And Trump’s Impact

During a CNBC interview, Vlad Tenev mentioned that the Bitcoin rally is simply what many have referred to as the ‘Trump Pump.’ He opined that the market is reacting to the widespread optimism that the Donald Trump administration will take a more positive approach to the crypto industry since the US President-elect has promised to embrace cryptocurrencies and make the US the center of crypto innovation.

The BTC price has risen over 24% in the last seven days, and Donald Trump has undoubtedly contributed to this rally, given that he took a pro-crypto stance right from the beginning of his campaign. The Robinhood CEO further explained how Donald Trump’s pro-crypto stance could matter.

He cited the US Securities and Exchange Commission’s (SEC) regulation-by-enforcement approach over the last four years and how that could change under Trump. Vlad Tenev noted how this stifled crypto innovation in the US and forced several crypto firms offshore.

He remarked that the idea is that the US SEC’s regulation-by-enforcement approach will stop under the Donald Trump administration and that there will be legislation that provides regulatory clarity. The Robinhood CEO remarked that this innovation could come through since the Republicans control the executive and legislative branches.

Potential Game-Changing Changes Under Donald Trump

The Robinhood CEO mentioned asset tokenization could become more feasible in the US under Donald Trump. He hinted at the possibility of traditional finance (TradFi) being more integrated into the decentralized finance (DeFi) space under the next administration.

Tenev used his company, Robinhood, as a case study of why such a move could matter. According to him,  they spend less managing their crypto business due to the cost-effectiveness of blockchain technology. He cited an instance of how TradFi could benefit from the 24/7 trading services that the blockchain provides.

Interestingly, Robinhood Chief Legal Officer (CLO) Dan Gallagher has emerged as one of the potential candidates to replace US SEC Chair Gary Gensler. Meanwhile, a Donald Trump administration will undoubtedly be a welcome development for the Robinhood CEO and his team, considering that the US SEC warned them earlier in the year about their crypto business.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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XRP Lawyer Reveals Why Ripple Unlikely To Promote XRP Like Bitcoin

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24 hours ago

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November 12, 2024

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XRP lawyer Bill Morgan has explained why Ripple is unlikely to promote XRP in the same way that Bitcoin is widely promoted. The remarks were made in response to a suggestion that Ripple could boost XRP’s popularity among retail investors by engaging in promotional activities similar to those seen with Bitcoin and other cryptocurrencies.

Bill Morgan noted that such actions could impact Ripple’s ongoing legal case with the U.S. Securities and Exchange Commission (SEC).

XRP Lawyer On Why Ripple Unlikely To Promote XRP

XRP lawyer Bill Morgan has emphasized that Ripple’s cautious approach to promoting XRP is largely influenced by its ongoing legal battles with the SEC. He pointed out that the court found Ripple’s sales of XRP did not meet the requirements of the Howey Test—a legal standard used to determine if an asset qualifies as a security.

Specifically, the court ruled that Ripple’s programmatic sales of XRP to retail holders did not constitute investment contracts, a decision largely based on the “relative lack of evidence of promotion of XRP to retail holders,” according to Morgan.

However, the SEC is actively appealing this ruling, and Ripple remains under scrutiny. As a result, any promotional efforts targeting retail investors could increase regulatory risks for Ripple. “I doubt Ripple ever will [promote XRP] and certainly not before legal proceedings are long in the rearview mirror,” Morgan added, highlighting the company’s cautious stance amid regulatory uncertainty.

Bitcoin Enjoys Regulatory Advantage, XRP Lawyer Says

XRP lawyer Bill Morgan has contrasted the promotional limitations on XRP with Bitcoin, noting that Bitcoin holders and advocates can promote the cryptocurrency freely without SEC interference. Since Bitcoin is widely recognized as a non-security asset, it does not face the same regulatory challenges that other digital assets like XRP encounter.

This gives Bitcoin a unique advantage, as supporters can openly encourage investments in Bitcoin without risking legal consequences.

The difference in regulatory treatment has created an “unfair SEC-created advantage over the whole market,” Morgan observed. This discrepancy has allowed Bitcoin’s adoption to flourish without the legal complexities faced by XRP and other assets. As Bitcoin’s price recently surged past $89,000 amid heightened interest from retail and institutional investors, the disparity in regulatory oversight between Bitcoin and other cryptocurrencies has become even more evident.

Concurrently, Cardano’s ADA token saw massive gains after Charles Hoskinson’s announcement, rising over 33% as speculation grew around its potential role in shaping U.S. crypto policy under the current Trump administration.

Legal Developments in SEC v. Ripple Case Ongoing

The SEC’s appeal in the Ripple case has been closely watched by the cryptocurrency industry, as it may set precedents for the treatment of digital assets. Recently, the U.S. Court of Appeals for the Second Circuit issued a scheduling order that requires the SEC to submit its opening brief for the appeal by January 15, 2025.

According to analysts, this delay may be linked to the potential impact of the upcoming U.S. presidential election, as some speculate that a change in administration could lead to shifts in regulatory priorities.

If the SEC fails to meet this deadline, the appeal could be dismissed, potentially providing Ripple with a clearer regulatory pathway. However, until the appeal is resolved, Ripple is likely to maintain a conservative approach regarding XRP promotion, according to legal experts.

Ripple CEO Brad Garlinghouse Optimistic Amid XRP Price Surge

Despite Ripple’s cautious stance, the XRP community has shown renewed optimism about the cryptocurrency’s future. XRP price has recently surpassed $0.61, sparking speculation of a possible price rally reminiscent of its 2017 highs.

Ripple CEO Brad Garlinghouse recently noted that XRP was once the “2nd most valuable digital asset,” and some community members are hopeful that the token may regain its former value as regulatory clarity improves.

Other factors are also boosting market sentiment around XRP, including the possibility of an XRP exchange-traded fund (ETF) approval in the United States, which could increase institutional interest in the asset.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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