Key facts
- Rossen Iossifov, serving a federal prison sentence, has been charged with allegedly moving $290,000 in forfeited cryptocurrency.
- Prosecutors allege the transfers occurred in January 2024 while Iossifov was incarcerated.
- The cryptocurrency was held in a Kraken account subject to a forfeiture order from a previous conviction.
- Iossifov faces charges including removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering.
- If convicted of the new charges, Iossifov faces a maximum penalty of 25 years in prison.
United States prosecutors have charged Rossen Iossifov, a Bulgarian national already serving a federal prison sentence, with allegedly moving and laundering approximately $290,000 in cryptocurrency. The assets were held in a Kraken account subject to a forfeiture order following his 2021 conviction.
Prosecutors allege that in January 2024, while incarcerated, Iossifov conspired to withdraw and transfer the crypto through illicit mixing services and exchanges before authorities could take possession. The Department of Justice stated that this case demonstrates how attempts to move crypto after a forfeiture order can lead to new criminal charges.
Iossifov, 53, was previously convicted of racketeering conspiracy and money laundering conspiracy for his role in an online auction fraud network that victimized at least 900 Americans. He owned and operated a crypto exchange called RG Coins, which converted criminal proceeds into crypto and cash. Evidence showed he laundered nearly $5 million in crypto in less than three years and was ordered to pay over $2.6 million in restitution.
He now faces charges of removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. If convicted, he could face an additional 25 years in prison, to be served consecutively with his current sentence. The U.S. Secret Service, which investigated both cases, called the alleged transfers a "direct challenge" to the judicial system.