US files charges against incarcerated man for allegedly moving and laundering ~$290,000 in crypto assets from frozen Kraken account

Odaily Planet Daily News U.S. prosecutors have recently filed criminal charges against an incarcerated man, accusing him of moving and laundering approximately $290,000 in crypto assets that were subject to a court-ordered seizure.

According to a statement from the U.S. Department of Justice (DOJ), Bulgarian national Rossen Iossifov is charged with conspiring with others in January 2024 to withdraw and transfer cryptocurrency assets from his Kraken account that had previously been ordered forfeited by a federal court. Prosecutors allege the funds were then moved through cryptocurrency mixing services and trading platforms in an attempt to conceal the source and destination of the funds before the U.S. government could execute the seizure.

The U.S. Attorney's Office for the Eastern District of Kentucky stated that these crypto assets were held in a Kraken account under Iossifov's name and had been restricted by judicial authorities during the relevant investigation. The DOJ has not yet disclosed how the account was specifically accessed or whether the funds in question have been recovered.

Iossifov was previously convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering for his involvement in an online auction fraud ring. Prosecutors say his cryptocurrency exchange platform, RG Coins, helped the criminal network convert illegal proceeds into cryptocurrency and cash. The network allegedly defrauded at least 900 victims in the United States. Previous investigations revealed that Iossifov processed nearly $5 million in crypto asset money laundering transactions in less than three years.

A court had previously ordered Iossifov to pay over $2.6 million in restitution and forfeit the related crypto assets. The new charges include obstruction of property seizure, aiding and abetting, and conspiracy to commit money laundering. If convicted, he faces a maximum of 25 years in prison.

The Department of Justice emphasized that the indictment represents an allegation, and Iossifov is presumed innocent until proven guilty in court. (Cointelegraph)