Bulgarian Prisoner Charged Over Alleged $290K Crypto Laundering Scheme

A Bulgarian national serving a federal prison sentence in the US has been charged by prosecutors for allegedly laundering over $290,000 in crypto assets held in a Kraken account subject to a forfeiture order. Rossen Iossifov, who was convicted of racketeering conspiracy and money laundering conspiracy for his role in an online auction fraud network, is accused of conspiring with others to withdraw and transfer the crypto assets in January 2024.

The US Department of Justice said that the cryptocurrency was held in an account registered to Iossifov at Kraken and had been restrained during the investigation. Prosecutors allege that the assets were moved through illicit mixing services and crypto exchanges before the US could take possession.

Iossifov owned and operated a crypto exchange called RG Coins, which converted criminal proceeds into crypto and cash for the network. He laundered nearly $5 million in crypto in less than three years, according to earlier evidence. The court ordered Iossifov to pay over $2.6 million in restitution and forfeit crypto assets.