Rossen Iossifov, a 53-year-old Bulgarian national currently serving 111 months in federal prison for laundering nearly $5 million in cryptocurrency, has been charged with conspiring to move $290,000 in court-ordered forfeited cryptocurrency while incarcerated. Prosecutors allege he executed the transfers in January 2024 through multiple exchanges and mixing services to prevent the government from seizing the funds. Iossifov was originally convicted in 2021 for his role in the Alexandria Online Auction Fraud network, where he operated RG Coins, a Sofia-based cryptocurrency exchange that converted illicit proceeds to cash for a Romanian fraud ring.
Iossifov Convicted in 2021 for $5 Million RG Coins Laundering Scheme
Iossifov owned and ran RG Coins, a cryptocurrency exchange based in Sofia, Bulgaria. He was convicted in 2021 of racketeering and money-laundering conspiracies for his role in the Alexandria Online Auction Fraud network. The Romanian ring posted fake listings for cars and other high-value goods on sites like eBay and Craigslist, collected payments from at least 900 American victims, and funneled the proceeds to overseas launderers.
Trial evidence showed Iossifov laundered nearly $5 million in cryptocurrency in under three years. He was ordered to pay more than $2.6 million in restitution and to forfeit the cryptocurrency now at the center of the new case. He was serving a 111-month term when the alleged transfers took place.
DOJ Files New Charges for January 2024 Prison Transfers
Iossifov made his first court appearance in the Eastern District of Kentucky this week on charges of removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering, according to a Department of Justice statement. Prosecutors allege that in January 2024 he conspired to withdraw and transfer the forfeited crypto through several exchanges and mixing services, which pool funds to hide their trail, to keep the money out of the government's reach.
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 that obstruction. The U.S. Secret Service, which investigated both cases, called the alleged transfers a "direct challenge" to the courts and to his victims.
If convicted on the new charges, Iossifov faces up to 25 years in prison on top of his current sentence. The Justice Department's computer crime section, which handled the prosecution, states it has secured convictions of more than 180 cyber and intellectual-property criminals since 2020 and court orders returning over $350 million to victims.
FAQ
What did Rossen Iossifov do in January 2024?
Prosecutors allege that in January 2024, while already in federal prison, Rossen Iossifov conspired to withdraw and transfer $290,000 in cryptocurrency that a court had ordered him to forfeit. He allegedly moved the funds through several exchanges and mixing services to prevent the government from seizing them.
Why was Iossifov originally convicted in 2021?
Iossifov was convicted in 2021 of racketeering and money-laundering conspiracies for his role in the Alexandria Online Auction Fraud network. He operated RG Coins, a cryptocurrency exchange in Sofia, Bulgaria, and laundered nearly $5 million in cryptocurrency for a Romanian fraud ring that scammed at least 900 American victims through fake online listings.
How much prison time does Iossifov face if convicted on the new charges?
If convicted on the new charges of removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering, Iossifov faces up to 25 years in prison on top of his current 111-month sentence.
