Summary
- Rossen Iossifov, a Bulgarian individual serving 111 months for laundering nearly $5 million, is accused of conspiring to transfer $290,000 in cryptocurrency that had been ordered forfeited by a court.
- Prosecutors contend that he executed the transfers through various exchanges and mixing services in January 2024, while incarcerated.
- If convicted on the new charges, Iossifov could face an additional 25 years behind bars.
A Bulgarian man, currently serving time for one of the largest cryptocurrency laundering cases in the United States, has been accused of orchestrating a new scheme from within federal prison, allegedly transferring $290,000 in cryptocurrency that a court had mandated he forfeit.
Rossen Iossifov, 53, appeared in court this week at the Eastern District of Kentucky to face charges of removing property to avoid seizure, aiding and abetting, and conspiracy to launder money, according to a statement from the Department of Justice. Prosecutors assert that in January 2024, he conspired to withdraw and reroute the forfeited cryptocurrency through several exchanges and mixing services, which obscure the money's origins, to evade governmental seizure.
Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division stated that defendants who disregard lawful orders from previous cases will face charges for such obstruction. The U.S. Secret Service, which investigated both matters, labeled the alleged transfers a “direct challenge” to the judicial system and to his victims.
The RG Coins Incident
Iossifov was the owner of RG Coins, a cryptocurrency exchange located in Sofia, Bulgaria, and was convicted in 2021 of racketeering and money laundering conspiracies related to his involvement in the Alexandria Online Auction Fraud network. This Romanian group created fraudulent listings for vehicles and other valuable items on platforms such as eBay and Craigslist, received payments from at least 900 American victims, and funneled the money to overseas money launderers, with Iossifov converting the cryptocurrency into cash at the end of the process.
Evidence presented during the trial indicated that he laundered almost $5 million in cryptocurrency in less than three years. He was ordered to pay over $2.6 million in restitution and to forfeit the cryptocurrency that is now the focus of the current case, all while serving a 111-month sentence when the alleged transfers occurred.
If found guilty of the new charges, Iossifov could be sentenced to an additional 25 years in prison on top of his existing sentence. The Justice Department's computer crime section, which oversaw the prosecution, claims to have secured convictions of over 180 cyber and intellectual-property criminals since 2020 and has returned more than $350 million to victims through court orders.