Svmuu News: U.S. prosecutors recently filed criminal charges against a man currently serving a prison sentence, accusing him of transferring and laundering cryptocurrency assets—valued at approximately $290,000—that had been ordered forfeited by a court.
According to an announcement by the U.S. Department of Justice (DOJ), Rossen Iossifov, a Bulgarian national, is accused of conspiring with others in January 2024 to withdraw and transfer a batch of cryptocurrency assets from his Kraken account that had previously been ordered forfeited by a federal court. Prosecutors allege that these funds were subsequently routed through cryptocurrency mixing services and trading platforms in an attempt to conceal their source and destination before the U.S. government could complete the seizure.
The U.S. Attorney’s Office for the Eastern District of Kentucky stated that these cryptocurrency assets were held in a Kraken account under Iossifov’s name and had been subject to judicial restrictions on their use during the relevant investigation. The Department of Justice has not yet disclosed exactly how the account was accessed, nor has it indicated whether the funds in question have been recovered.
Iossifov was previously convicted of conspiracy to commit extortion and conspiracy to launder money for his involvement in an online auction fraud ring. Prosecutors allege that RG Coins, the cryptocurrency trading platform he operated, helped the criminal network convert illicit proceeds into cryptocurrency and cash, defrauding at least 900 U.S. victims. Previous investigations revealed that Iossifov processed nearly $5 million in cryptocurrency money-laundering transactions in less than three years.
The court had previously ordered Iossifov to pay more than $2.6 million in restitution and to forfeit the relevant cryptocurrency assets. The new charges include obstruction of property seizure, aiding and abetting a crime, and conspiracy to launder money. If convicted, he could face up to 25 years in prison.
The U.S. Department of Justice emphasized that the current indictment constitutes an accusation only, and Iossifov is presumed innocent until proven guilty in court. (Cointelegraph)