A Bulgarian national serving 121 months in prison for laundering millions stolen from American fraud victims has been charged with a new crime: stealing $290,000 in government-seized cryptocurrency — while behind bars.
The Details
Fifty-three-year-old Rossen G. Iossifov appeared in federal court in the Eastern District of Kentucky on charges of removal of property to prevent seizure and conspiracy to commit money laundering. Prosecutors allege that in January 2024, while already incarcerated for a 2021 conviction, Iossifov conspired with others to move $290,000 in cryptocurrency from a seized account. The funds were routed through multiple crypto exchanges and mixing services to keep them out of the government’s hands.
A History of Crypto Crime
Iossifov’s original conviction stemmed from his ownership of RG Coins, a cryptocurrency exchange in Sofia, Bulgaria. His clients included members of the Alexandria Online Auction Fraud Network, a Romanian fraud ring that victimized at least 900 Americans through fabricated Craigslist and eBay listings for high-value goods. Once victims paid, the fraudsters converted the funds into cryptocurrency, which Iossifov then transferred to foreign money launderers — often offering favorable exchange rates and requiring no identification.
What Happens Next
US Secret Service Special Agent Robert Holman stated: “Iossifov’s deliberate attempt to remove and launder lawfully seized funds is a direct challenge to our justice system and a blatant disregard to his victims’ rights.” The case underscores that even from a prison cell, determined criminals can find ways to continue their schemes — and that law enforcement is watching. Iossifov now faces additional time on top of his decade-long sentence.
