A crypto mixer founder is going to jail for 12.5 years after being convicted of money laundering. This sends a strong message that the US government is serious about cracking down on crypto platforms used for illegal activities.
Crypto Mixer Founder Sentenced
The founder of Bitcoin Fog, a crypto mixing service, was sentenced to 12.5 years in prison for helping criminals launder $400 million. Prosecutors called Bitcoin Fog one of the “largest and longest-running money laundering services.”
Criminals used the platform to clean money from illegal activities like drug dealing. The judge also ordered the founder to forfeit $395 million in assets and over $103 million worth of Bitcoin stored in a Bitcoin Fog wallet.
A Lighter Sentence?
The 12.5-year sentence is less than the 30 years the government requested and the maximum 50-year sentence allowed. Prosecutors argued for a harsher punishment because of the scale and duration of the scheme. They said Bitcoin Fog made it easy for criminals to hide the source of their money.
A Warning to Others
The judge said a life sentence wasn’t appropriate, but the penalty needed to be severe enough to deter others. The US Department of Justice said this sentence shows their commitment to holding people accountable for helping criminals.
