US Prosecutors Charge Incarcerated Man with Moving and Laundering Seized Crypto Assets from Kraken Account, Amount Involved Approximately $290,000

Odaily News U.S. prosecutors have recently filed criminal charges against an incarcerated man, accusing him of transferring and laundering approximately $290,000 in cryptocurrency assets that had been ordered confiscated by a court.

According to a statement from the U.S. Department of Justice (DOJ), Bulgarian national Rossen Iossifov is accused of conspiring with others in January 2024 to withdraw and transfer a batch of cryptocurrency assets from his Kraken-registered account, which had previously been ordered forfeited by a federal court. Prosecutors allege that these funds were subsequently routed 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 complete the seizure.

The U.S. Attorney's Office for the Eastern District of Kentucky stated that the 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 accessed, nor whether the funds involved have been recovered.

Iossifov was previously convicted of conspiracy to commit extortion and conspiracy to commit money laundering for his involvement in an online auction fraud ring. Prosecutors allege that the cryptocurrency exchange platform he operated, RG Coins, helped the criminal network convert illicit proceeds into cryptocurrency and cash, with the network defrauding at least 900 U.S. victims. Previous investigations showed that Iossifov processed nearly $5 million in cryptocurrency money 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 obstructing property seizure, aiding and abetting, and conspiracy to commit money laundering. If convicted, he could face up to 25 years in prison.

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