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Can you go to prison for using crypto mixing services
|Thanks for visiting Spodek Law Group. We’re a second-generation law firm managed by Todd Spodek, with over 40 years of combined experience handling federal criminal cases. You’ve probably heard of some of our work – Todd represented Anna Delvey in the case that became a Netflix series, we handled the Ghislaine Maxwell juror misconduct matter, and defended clients in the Alec Baldwin stalking case. If you’re researching whether crypto mixer use can land you in federal prison, you’re asking the right question at the right time.
The short answer – yes, you can go to prison for using crypto mixing services. People are in prison right now serving multi-year sentences, some over a decade. Roman Sterlingov got 12 and a half years for operating Bitcoin Fog. Larry Harmon did three years for running Helix. Roman Storm was just convicted in August 2025 for his role in Tornado Cash and faces up to five years when he’s sentenced. Federal prosecutors treat mixers as money laundering tools, period.
Operating vs. Using: A Dangerous Distinction
Most prison sentences you read about involve people who operated mixing services, not everyday users. Bitcoin Fog processed over 1.2 million bitcoin – worth roughly $400 million when those transactions occurred. Tornado Cash moved over $1 billion in criminal proceeds, including funds stolen by North Korean hackers. These were large-scale operations that facilitated crimes.
But that distinction doesn’t protect users. Federal law treats unlicensed money transmitting as a separate crime from money laundering, and both can apply to the same conduct. When you use a mixer, you’re potentially violating 18 U.S.C. § 1960 if the service isn’t registered with FinCEN. That’s five years per count. Money laundering conspiracy under 18 U.S.C. § 1956 carries 20 years maximum. Stack multiple counts together – which prosecutors love doing – and a user could face decades in prison.
The 2025 DOJ Policy Shift
In April 2025, Deputy Attorney General Todd Blanche issued a memo titled “Ending Regulation By Prosecution.” According to the new guidance, DOJ “will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users or unwitting violations of regulations.”
That sounds like good news. And it is – kind of. The memo signals prosecutors won’t go after you just for using privacy tools. But it doesn’t create immunity. If federal agents find evidence you used a mixer to hide proceeds from fraud, drug trafficking, tax evasion, or any other federal crime, they’ll still charge you. The April memo changes enforcement priorities, it doesn’t rewrite the underlying statutes.
We’ve already seen this play out. In July 2025, the CEO and CTO of Samourai Wallet pled guilty to conspiracy charges for operating a mixing service that transmitted over $2 billion in criminal proceeds. Federal investigations move slowly – if you used a mixer two years ago, you could still face charges today.
What Makes Mixer Use Prosecutable
Privacy isn’t a crime. Plenty of people use mixers for legitimate reasons – they don’t want their boss tracking how they spend money, they’re concerned about exchange hacks, they don’t want competitors monitoring business transactions. Those motivations don’t make you a criminal.
The problem is proving that innocent intent to a federal jury. Prosecutors will argue that legitimate users don’t need mixers, that mixing equals consciousness of guilt, that you knew you were commingling your funds with drug dealers and ransomware operators. They’ll put blockchain analysts on the stand who trace your mixed coins back to dark web markets. And juries believe prosecutors – they believe the government wouldn’t bring charges unless they had solid evidence.
Most crypto mixer investigations don’t start with the mixer itself. You get arrested for an unrelated crime, agents search your phone and find Wasabi Wallet, now they’re looking at every transaction you ever made. Or your business partner gets charged and cooperates, tells agents you used mixers. Or IRS Criminal Investigation finds you failed to report gains and refers the case to DOJ. That’s when mixer use becomes prosecutable – when it’s connected to underlying criminal activity or tax evasion.
Actual Sentences in Recent Cases
Federal sentencing guidelines use a table that calculates prison time based on offense level and criminal history. For money laundering, the base offense level starts at 20. The level increases based on the value of funds laundered. Over $250,000 adds 4 levels. Over $1.5 million adds 10 levels. Over $25 million adds 20 levels.
Roman Sterlingov’s guidelines apparently called for up to 50 years. Prosecutors asked for 30 years. The judge sentenced him to 12 and a half years. That’s a devastating sentence – and it was below the guidelines. In January 2025, three Russian nationals were indicted for operating Blender.io and Sinbad.io. They each face 20 years on the money laundering conspiracy count alone.
Roman Storm’s August 2025 trial produced a split verdict that matters for users. Storm was a developer who wrote code for Tornado Cash. Prosecutors charged him with money laundering conspiracy, sanctions violations conspiracy, and unlicensed money transmission conspiracy. The jury convicted him on the unlicensed money transmission count but deadlocked on the two more serious charges.
That verdict tells you something important. If a jury won’t convict a developer who built a mixer that processed over $1 billion in criminal funds on the major charges, prosecutors need more than just mixer involvement. They need to prove you knew you were laundering criminal proceeds, not just that you wanted privacy. They’ll focus on the specific facts – did you use a mixer immediately after fraud? Did you cash out through multiple exchanges? Did you file false tax returns? Those facts make the case.
FinCEN Penalties Are Separate From Criminal Charges
Criminal charges aren’t the only risk. FinCEN can impose civil money penalties for operating an unregistered money transmitting business. Larry Harmon got three years in prison and faced a $60 million FinCEN penalty. That’s a separate enforcement action from the criminal case, with a lower burden of proof.
What to Do If You’re Under Investigation
If you used a mixer and you’re now facing federal investigation or charges, the worst thing you can do is talk to agents without a lawyer. Federal agents are trained to get confessions. They’ll tell you cooperation will help when it actually destroys your defense. They’ll say everyone talks, that silence makes you look guilty, that you should just explain the innocent reasons you used a mixer. Don’t.
We see cases regularly where clients gave voluntary statements thinking they could clear things up. Those statements become the prosecution’s case. You can’t un-say something once it’s recorded. At Spodek Law Group – we tell clients to assert their Fifth Amendment rights immediately and let us handle communications with the government.
Discovery in crypto cases is massive. Blockchain analysis reports, transaction histories, exchange records, Telegram messages – it’s overwhelming. You need a lawyer who understands both the technology and federal criminal procedure. We work with crypto experts who can challenge the government’s blockchain analysis, show alternative explanations for transaction patterns, and identify weaknesses in the prosecution’s technical case.
The Stakes Are Too High to Handle Alone
Can you go to prison for using crypto mixing services? Absolutely. The April 2025 DOJ policy shift reduces the risk for users who didn’t mix criminal proceeds, but it doesn’t eliminate it. Federal prosecutors still have the tools to charge money laundering and unlicensed money transmission. Judges still impose lengthy sentences when they believe defendants were hiding criminal activity.
If you’re under investigation or have been charged, you need experienced federal criminal defense representation. We’re talking about years or decades in federal prison, forfeiture of assets, permanent criminal records. At Spodek Law Group, we’ve handled complex federal cases – the kind where others say there’s no defense. Todd Spodek is a second-generation criminal defense lawyer who has successfully defended hundreds of federal cases. Our team includes former prosecutors who understand how DOJ builds these cases and where the weaknesses are. Regardless of how complicated your case is, or how challenging it is – we can help you build a defense strategy that addresses your specific situation. We’re available 24/7.