- US charges Rossen Iossifov over an alleged $290K crypto laundering scheme from prison.
- Prosecutors say forfeited crypto moved through mixers to hinder government recovery.
- Earlier fraud case tied Iossifov to nearly $5M laundered and 900 US scam victims.
Federal prosecutors have filed new criminal charges against Bulgarian national Rossen G. Iossifov, alleging that he conspired to launder approximately $290,000 worth of cryptocurrency that had already been seized and ordered forfeited following his earlier federal fraud conviction.
According to the charges, the alleged conspiracy took place in January 2024 while Iossifov was serving a prison sentence in the United States. The case introduces a new chapter in an investigation that began with his conviction for participating in a multinational fraud operation targeting hundreds of American victims.
New Indictment Centers on Previously Seized Cryptocurrency
The latest charges stem from cryptocurrency that a federal court had previously ordered forfeited after Iossifov’s 2021 conviction in the U.S. District Court for the Eastern District of Kentucky. In addition to the forfeiture order, the court required him to pay $2.6 million in restitution to victims affected by the fraud scheme.
According to prosecutors, Iossifov allegedly conspired in January 2024 to transfer the forfeited cryptocurrency through multiple exchanges and cryptocurrency mixers. Authorities allege those transactions were intended to cover up the movement of the assets and prevent the U.S. government from recovering the funds.
Earlier Conviction Linked to International Fraud Network
The new case follows Iossifov’s 2021 conviction for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense and conspiracy to commit money laundering. He later received a sentence of 121 months in federal prison.
Court documentation released during that trial showed that Iossifov owned and managed RG Coins, a cryptocurrency exchange headquartered in Sofia, Bulgaria. Prosecutors said the exchange knowingly provided services that enabled fraudsters to convert and move proceeds earned through criminal activity while reducing the likelihood of detection.
Authorities identified several of the exchange’s primary clients as members of the Alexandria Online Auction Fraud (AOAF) Network, a Romanian criminal organization that carried out online auction scams targeting American consumers.
Investigators Outline Alleged Laundering Activity
According to documents presented in the earlier case, the AOAF Network defrauded at least 900 victims in the United States. Prosecutors said Iossifov laundered nearly $5 million in cryptocurrency connected to the scheme over a period of less than three years and personally earned more than $184,000 from those activities.
The U.S. Secret Service investigated both the original fraud case and the newly filed allegations. Special Agent in Charge Robert Holman of the USSS Louisville Field Office said the alleged attempt to move lawfully seized assets represented a direct challenge to the justice system and disregarded the rights of fraud victims.
Related: AudiA6 Crypto Laundering Network Dismantled by Authorities
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