Bulgarian Crypto Launderer Charged with Transferring Forfeited Funds from Prison

Rossen Iossifov, a Bulgarian man serving time for his role in one of the largest crypto laundering cases in the US, has been charged with moving $290,000 in forfeited cryptocurrency from prison. The alleged scheme took place in January 2024, while Iossifov was already serving a 111-month term for racketeering and money-laundering conspiracies.

The Justice Department claims that Iossifov conspired to withdraw the crypto through various exchanges and mixing services, which obscure the trail of the funds. This is seen as a direct challenge to the courts and his victims, according to the US Secret Service, which investigated both cases.

Iossifov owned and operated RG Coins, a cryptocurrency exchange in Sofia, Bulgaria, and was convicted in 2021 for his role in the Alexandria Online Auction Fraud network. He laundered nearly $5 million in cryptocurrency over three years and was ordered to pay over $2.6 million in restitution.

If convicted on the new charges, Iossifov faces up to 25 years in prison, in addition to his current sentence.