DOJ Fails to Secure $290,000 in Seized Crypto, Transferred by Convicted Scammer

Rossen Iossifov, a Bulgarian national serving a nine-year sentence for money laundering, allegedly conspired to move around $290,000 in cryptocurrency while behind bars. The funds were forfeited to the US after a court order but remained under Iossifov's control until he transferred them through multiple exchanges and illicit mixing services.

The case highlights a potential gap between a court's forfeiture decision and the government obtaining technical control of seized assets. Until an agency gains practical control of a wallet, someone with valid access can still transfer the funds elsewhere.

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