Rossen Iossifov charged over alleged transfer of $290,000 in seized crypto

Rossen Iossifov has been charged with conspiring to launder roughly $290,000 in cryptocurrency that U.S. authorities had already seized and a court had ordered forfeited after his earlier fraud conviction. Prosecutors allege he worked with associates between January and December 2024, while serving a 111-month sentence, to withdraw the funds from a Kraken account and route them through multiple crypto exchanges and mixing services before converting the proceeds into fiat currency and depositing them into a foreign bank account. Iossifov, who remains presumed innocent, was previously convicted in connection with RG Coins, his Sofia-based cryptocurrency exchange, which prosecutors said laundered nearly $5 million tied to an online auction fraud ring that targeted at least 900 Americans over three years. The earlier case resulted in his prison sentence and a restitution order of $2,642,297.43. The new charges include destruction or removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering, and carry a maximum sentence of 25 years if he is convicted. The U.S. Secret Service led the investigation with support from the Department of Justice’s Office of International Affairs.