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Fraudster in prison charged over alleged $290K crypto forfeiture moves

Prosecutors allege the transfers were routed through multiple exchanges and mixing services in January 2024, while he was already serving a 111-month sentence.

Reported · Written up by our desk · Regulation

A Bulgarian man already incarcerated for cryptocurrency laundering and racketeering has been charged with conspiring to move crypto that a court previously ordered him to forfeit, according to a U.S. Department of Justice statement relayed by Decrypt.

Decrypt reports that Rossen Iossifov, 53, appeared in federal court this week in the Eastern District of Kentucky on charges including removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering.

Prosecutors allege that in January 2024, while in federal prison, he directed withdrawals and transfers of $290,000 in forfeited cryptocurrency through multiple exchanges and mixing services designed to obscure transaction trails.

Decrypt also notes that the U.S. Secret Service said the alleged conduct was a direct challenge to court orders and victims. If convicted, Iossifov faces up to 25 years in prison in the new case on top of his current 111-month sentence.

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