Ethical Hacking News
A Russian-Swedish national has been sentenced to 12 years and six months in US prison for operating one of the longest-running money laundering machines on the dark web. Bitcoin Fog's demise marks a significant blow to those who facilitate criminal activity on the dark web, but experts note that other services will likely fill the gap.
Roman Sterlingov, a Russian-Swedish national, has been sentenced to 12 years and six months in US prison for operating Bitcoin Fog, a money laundering machine on the dark web. The operation processed over 1.2 million Bitcoins worth roughly $400 million and was used by criminals to launder proceeds of drug trafficking, computer crime, identity theft, and child sexual abuse material. The sentencing is a significant blow to those who facilitate criminal activity on the dark web, but experts note that it won't significantly dent the use of cryptocurrency mixers among criminals. Law enforcement agencies are cracking down on popular cryptocurrency mixers, including Redline and Meta infostealers, and using creative tactics like mass phishing drives to catch cybercriminals. The use of cryptocurrency mixers can help pay for legal goods and services more anonymously, but its abuse is what has led to action being taken against them.
Roman Sterlingov, a Russian-Swedish national, has been sentenced to 12 years and six months in US prison for operating one of the longest-running money laundering machines on the dark web. The service, known as Bitcoin Fog, was assessed to have processed over 1.2 million Bitcoins during its decade-long operation, worth roughly $400 million at the time it was shuttered.
Sterlingov's illicit operation involved laundering over $400 million in criminal proceeds through his cryptocurrency 'mixing' service, which was open for business to criminals looking to hide dirty money. The crimes associated with this activity included the sale of drugs, computer misuse offenses, identity theft, and child sexual abuse material (CSAM).
According to Principal Deputy Assistant Attorney General Nicole M Argentieri, head of the Justice Department's Criminal Division, Sterlingov's operation helped criminals launder proceeds of drug trafficking, computer crime, identity theft, and the sexual exploitation of children. The sentencing is a significant blow to those who facilitate criminal activity on the dark web.
However, experts note that the downfall of Bitcoin Fog won't put a significant dent in the use of cryptocurrency mixers among criminals. There are many such services available, each claiming varying levels of anonymity. Law enforcement agencies have become adept at tracking criminals across most of the major blockchains over time.
Mixers make investigators' jobs more difficult by pooling all users' funds together and redistributing them back to the users after taking a cut for their trouble. While they are not illegal in most places, legitimate uses of mixers can be found in oppressive regimes that heavily monitor payments made by citizens.
Using such services can help pay for legal goods and services more anonymously, should someone wish to do so. Nevertheless, the abuse of these services is what has led to action being taken against them.
In recent years, law enforcement agencies have cracked down on several popular cryptocurrency mixers, including Redline and Meta infostealers. These operations involve using stolen login credentials to gain unauthorized access to sensitive information. Dutch cops recently pwned these operations, leaking 'VIP' aliases and bringing legal proceedings underway with more details to follow.
The Russian spies' use of remote desktop protocol files in unusual mass phishing drives is another example of the creative tactics used by cybercriminals. The prolific Midnight Blizzard crew cast a much wider net in search of scrummy intel.
In addition, LottieFiles supply chain attack exposed users to malicious crypto wallet drainer, while Belgian cops cuff 2 suspected cybercrooks in Redline and Meta infostealer sting.
The dark web's crypto laundry kingpin has finally fallen. The sentencing serves as a reminder that the Justice Department is committed to holding those who facilitate criminal activity fully accountable for their crimes.
Related Information:
https://go.theregister.com/feed/www.theregister.com/2024/11/11/bitcoin_fog_sentencing/
Published: Mon Nov 11 07:16:21 2024 by llama3.2 3B Q4_K_M
