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(Bloomberg) — The founder of a cryptocurrency mixing service known as Bitcoin Fog was ordered to serve 12 1/2 years in prison for laundering tens of millions of dollars from darknet markets that sold illegal drugs.


Roman Sterlingov, 36, was sentenced to 150 months in Washington federal court on Friday by U.S. District Judge Randolph Moss. Sterlingov, a Russian-Swiss citizen, was convicted by a jury in March on charges related to operating what prosecutors said was one of the “largest and longest-running money laundering services.”


Sterlingov provided a service that scrambled digital tokens to make it harder to find the source of proceeds from illegal activities. Prosecutors said Bitcoin Fog processed hundreds of millions of dollars in untraceable transactions, including some from well-known darknet markets. Sterlingov was convicted of conspiracy to launder money, money laundering and two charges related to running an unregistered money transmission service.


On Friday, Sterlingov expressed his regret in court. “I am sorry for any harm my actions may have caused,” he told the judge. “I am completely committed to becoming a better person.”


Moss imposed a significantly lighter prison sentence than the 30 years the government had sought and the 50-year maximum in U.S. sentencing guidelines. “A life sentence seems inconsistent with the degree of guilt,” but the punishment should be severe enough to deter others, especially in the crypto world where authorities have a hard time catching criminals, the judge said.


Prosecutors pushed for a stiff sentence because of the scale and duration of the scheme. “This is criminal activity of staggering proportions over an extended period of time,” said Christopher Brown, a prosecutor on the case. The government also said he lied under oath during the trial when he denied operating Bitcoin Fog or deriving wealth from the mixing service. The defendant’s statements “cannot be reconciled with the jury’s verdict,” prosecutors wrote in their sentencing memo.


During the trial, Sterlingov testified that he used Bitcoin Fog, but did not operate the service. His lawyer, Tor Ekeland, said there were no eyewitness accounts or service logs to prove his client led the agency. Sterlingov’s lawyers told the judge he should receive no more than seven and a half years in prison.


The case is US v. Sterlingov, 21-cr-00399, US District Court, District of Columbia (Washington, DC).


(Updates with details of the sentencing hearing.)


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