Convicted Scammer Moves Millions in Crypto from Prison Wallet

A convicted scammer in the United States managed to move $290,000 worth of cryptocurrency from his wallet while serving a nine-year prison sentence. The Department of Justice (DOJ) had previously secured a forfeiture order for the assets, but failed to obtain control of them until it was too late.

Rossen Iossifov owned Bulgaria-based crypto exchange RG Coins and was convicted of RICO conspiracy and conspiracy to commit money laundering in 2021. Prosecutors said Romanian scammers posted fake listings for vehicles and other expensive goods on sites like Craigslist and eBay, took payments from at least 900 Americans, then converted the proceeds into cryptocurrency.

The DOJ says Iossifov allegedly routed the cryptocurrency through multiple exchanges and illicit mixing services, preventing the United States from obtaining possession. The case highlights a potential gap between a court's forfeiture order and the government obtaining control of assets that can still be transferred.