US authorities have charged an incarcerated man with allegedly transferring and laundering approximately $290,000 in crypto assets that had been seized from his Kraken account.

Odaily Planet Daily reported that US prosecutors have recently filed criminal charges against an incarcerated man, accusing him of transferring and laundering approximately $290,000 in crypto assets that were previously ordered confiscated by a court.

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

The US 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, nor whether the involved funds have been recovered.

Iossifov was previously convicted of conspiracy to commit extortion and conspiracy to commit money laundering for his participation in an online auction fraud ring. Prosecutors allege that his cryptocurrency trading platform, RG Coins, helped the criminal network convert illegal proceeds into cryptocurrency and cash, and the network defrauded at least 900 US victims. Previous investigations showed that Iossifov processed nearly $5 million in crypto asset laundering transactions in less than three years.

The 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 could face up to 25 years in prison.

The US Department of Justice emphasizes that the indictment currently represents only allegations, and Iossifov is presumed innocent until proven guilty in court. (Cointelegraph)