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US charges prisoner with laundering about $290,000 in forfeited Kraken crypto
Prosecutors allege the crypto was moved in January 2024 through mixing services and exchanges after a federal forfeiture order, with charges carrying up to 25 years in prison.
US prosecutors charged Rossen Iossifov, a Bulgarian national currently serving a federal prison sentence, with alleged removal and laundering of about $290,000 in crypto assets held in a Kraken account that was subject to a forfeiture order, according to Cointelegraph.
The US Department of Justice said Iossifov conspired in January 2024 to withdraw and transfer crypto that a federal court ordered forfeited after his 2021 conviction, and prosecutors allege the assets were routed through illicit mixing services and crypto exchanges before authorities could take possession.
Cointelegraph reports that the cryptocurrency was held in an account registered to Iossifov at Kraken and was restrained during the investigation, though the DOJ announcement did not specify how the account was accessed or whether the funds were recovered.
Cointelegraph also notes that the case stems from Iossifov’s prior racketeering conspiracy and money laundering conspiracy tied to an online auction fraud network that victimized at least 900 Americans, with prosecutors saying he previously laundered nearly $5 million in crypto in less than three years. The indictment alleges removing property to prevent seizure, aiding and abetting and conspiracy to commit money laundering, and prosecutors say the charges carry a maximum penalty of 25 years if convicted.