Inmate charged with stealing seized cryptocurrency while serving prison sentence

A Bulgarian national, already serving a lengthy prison sentence for laundering millions stolen from American fraud victims, has been charged with stealing $290,000 in government-seized cryptocurrency. Rossen G. Iossifov appeared in federal court this Wednesday on charges of removal of property to prevent seizure and conspiracy to commit money laundering, as reported by Bleeping Computer.

While incarcerated, Iossifov allegedly conspired with others to move $290,000 in cryptocurrency from a seized account in January 2024. The funds were routed through multiple crypto exchanges and mixing services to evade government seizure. Iossifov's previous conviction stemmed from his operation of RG Coins, a cryptocurrency exchange in Sofia, Bulgaria, which facilitated money laundering for the Alexandria Online Auction Fraud Network. This network victimized at least 900 Americans by selling non-existent goods and converting payments into cryptocurrency, which Iossifov then laundered.

Evidence indicated Iossifov tailored his business to criminal clients, offering favorable exchange rates and allowing transactions without identification. He previously laundered nearly $5 million for four network members, collecting over $184,000. The court ordered him to pay over $2.6 million in restitution and forfeit the cryptocurrency in the new case. If convicted of the new charges, he faces a maximum of 25 years in prison.

Source: Bleeping Computer