- A Bulgarian prisoner has been charged with transferring $290,000 in forfeited funds.
- Rossen Iossifov is in jail for laundering nearly $5 million in crypto within three years.
- Iossifov could face an additional 25 years in jail if found guilty of the latest charges.
A Bulgarian inmate serving time for a crypto laundering case in the US has been accused of orchestrating another scheme from inside prison. The 53-year-old Rossen Iossifov allegedly conspired to move $290,000 in cryptocurrency that a court had ordered him to forefeit.
Iossifov is serving a 111-month criminal sentence for laundering nearly $5 million. However, if found guilty of the latest charges, he could remain in jail for an additional 25 years, according to reports. The Department of Justice stated that Iossifov is being prosecuted for removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering.
A Direct Challenge to the Courts
Prosecutors allege that in January 2024, the inmate conspired to withdraw and transfer the forfeited crypto through several exchanges and mixing services. Such platforms typically pool funds to hide their trail and keep money out of third parties’ reach, which happens to be the government on this occasion.
Speaking on the issue, Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, stated that defendants who flout lawfully entered orders from earlier cases will be charged for obstruction. The alleged transfer is a “direct challenge” to the courts and Iossifov’s victims, according to the U.S. Secret Service, which investigated both cases.
Iossifov’s $5 Million Case
Iossifov was the owner of RG Coins, a cryptocurrency exchange based in Sofia, which he also ran. The court convicted him in 2021 for racketeering and money laundering conspiracies for his role in the Alexandria Online Auction Fraud network.
The Romanian ring operated by posting fake listings for cars and other high-value goods on e-commerce sites like eBay and Craigslist. They received payments from not less than 900 American victims, funneling the proceeds to overseas launderers. Meanwhile, Iossifov operated at the end of the chain and helped the syndicate convert crypto to cash.
During the trial, evidence showed Iossifov laundered nearly $5 million in cryptocurrency in less than three years. The court ordered him to pay over $2.6 million in restitution and forfeit the cryptocurrency, which has become the subject of a new case.
It is worth noting that the 25-year jail term mentioned earlier will add to Iossifov’s current sentence if he is found guilty of the new charges. Meanwhile, the Justice Department’s computer crime section handling the case boasts of securing convictions of more than 180 cyber and intellectual-property criminals since 2020 and court orders returning over $350 million to victims.
Related: Polish Authorities Arrest Four in Major Crypto SIM Swap Investigation
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