The Department of Justice has repeatedly opined that cryptocurrency mixers are legal. That may be true in theory, but doesn't translate into practice, the appellate court in Washington DC appeared to argue today.

Roman Sterlingov was arrested in April 2021 at Los Angeles International Airport and indicted almost a year later, in July 2022, for running the early custodial bitcoin mixer, Bitcoin Fog. According to the government, the mixer processed close to $336 million in bitcoin, including $78 million related to darknet markets like Silk Road, Agora, AlphaBay and Evolution.

In 2024, Sterlingov, a Swedish national, was found guilty of conspiracy to commit money laundering as well as several counts of violations of federal and state money transmission laws, and sentenced to 12.5 years in prison.

Today, the United States Court of Appeals for the District of Columbia Circuit heard the defense and prosecution's arguments in Sterlingov's appeal, which mainly focused on the discussion of venue.

The three judge panel appears to have given the case a thorough read, Sterlingov’s attorney Tor Ekeland told The Rage after the hearing. “It’s a very smart court, I think they’re looking at this intensely, I have no idea what they’re going to do,” he added.

All Mixer Funds – Licit or Illicit – As Part of the Criminal ConspiracyAll Mixer Funds – Licit or Illicit – As Part of the Criminal Conspiracy

Who Can the US Prosecute for Unlicensed Money Transmission?Who Can the US Prosecute for Unlicensed Money Transmission?

Who Operated Bitcoin Fog?Who Operated Bitcoin Fog?

...read more at therage.co