The US Department of Justice (DOJ) has brought new charges against Bulgarian national Rossen Iossifov, currently serving a 111-month prison sentence, alleging he orchestrated a plan from federal prison to remove approximately $290,000 worth of cryptocurrency from government reach after its seizure was ordered by the court.
2024 crypto transfers spark fresh federal indictments
According to the DOJ, 53-year-old Iossifov appeared before a judge in the Eastern District of Kentucky to face allegations of asset concealment to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. Prosecutors claim that in January 2024, Iossifov directed efforts to withdraw and transfer the crypto assets via multiple exchanges and mixing services, attempting to circumvent the court’s confiscation order.
Mini glossary: A mixing service is a tool designed to obscure the origin and destination of cryptocurrency transfers. These systems pool assets from various users, making blockchain tracing significantly more difficult.
Deputy Assistant Attorney General A Tysen Duva from the DOJ’s Criminal Division emphasized that courts will pursue new charges against defendants who interfere with or disregard lawful judicial orders issued in previous cases.
The US Secret Service also participated in the investigation, viewing the alleged transfers as a direct challenge to court orders and the interests of the scam’s victims.
Iossifov’s criminal background includes major crypto laundering conviction
Previously, Iossifov was the owner and operator of Sofia-based cryptocurrency exchange RG Coins, a platform facilitating digital asset trades. In 2021, he was convicted in the US following an extensive investigation into a large-scale fraud and money laundering operation.
Prosecutors allege that a Romania-linked fraud ring posted fake listings for vehicles and high-value goods on platforms such as eBay and Craigslist, deceiving at least 900 Americans. Payments from victims were funneled into a foreign laundering network, with Iossifov allegedly playing the critical role of converting illicit crypto proceeds into cash at the end of the chain.
Evidence presented during trial indicated that Rossen Iossifov facilitated the laundering of approximately $5 million in cryptocurrency in less than three years.
New conviction could extend Iossifov’s sentence by up to 25 years
Earlier court rulings had mandated Iossifov to pay over $2.6 million in restitution and ordered the forfeiture of the same crypto assets at the center of the new case. Prosecutors argue that the purported illegal transfers took place while Iossifov was already serving his current 111-month sentence.
If convicted on the latest charges, Iossifov risks an additional sentence of up to 25 years in prison, separate from his current term. The DOJ’s cybercrime unit added that since 2020, it has secured more than 180 convictions in cybercrime and intellectual property cases, with over $350 million returned to victims.
