A convicted cryptocurrency fraudster, Rossen Iossifov, is facing fresh criminal charges over allegations that he orchestrated the unauthorized withdrawal and transfer of about $290,000 in cryptocurrency while serving a prison sentence.
The 53-year-old has been charged with destruction or removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering in connection with the alleged diversion of digital assets that had been seized and forfeited by U.S. authorities as part of an earlier criminal case.
“Having been convicted of a widespread online auction fraud scheme targeting U.S. victims, Iossifov is now charged with moving cryptocurrency that he obtained from that crime, in violation of a court’s forfeiture order,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“Defendants who flout lawfully entered orders and portions of their criminal sentences in prior federal cases will be charged with such obstructive conduct. The Department of Justice will take all steps to ensure that justice is served for victims of complex financial crimes.”
At the time of the alleged offences, Iossifov was serving a 111-month prison sentence after being convicted of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act and conspiracy to commit money laundering.
According to court documents and trial evidence, Iossifov and his co-conspirators operated an online auction fraud scheme that defrauded at least 900 Americans.
Members of the network based in Romania allegedly posted fake listings for high-value items, primarily vehicles, on online marketplaces including Craigslist and eBay, advertising goods that did not exist.
After convincing victims to send payments, the group allegedly laundered the proceeds through a complex scheme in which U.S.-based associates collected the funds, converted them into cryptocurrency, and transferred the digital assets to overseas money launderers, including Iossifov.
Prosecutors said evidence presented during the trial and sentencing showed that Iossifov laundered nearly $5 million worth of cryptocurrency in less than three years.
As part of Iossifov’s sentence, the U.S. District Court for the Eastern District of Kentucky issued a forfeiture money judgment and ordered him to surrender cryptocurrency worth approximately $290,000 held in a Kraken account registered in his name. The digital assets had been frozen during the criminal investigation.
However, according to a separate indictment, prosecutors allege that between January and December 2024, Iossifov conspired with others to unlawfully remove the cryptocurrency from the Kraken account to obstruct the U.S. government’s efforts to take custody of the forfeited assets.
Authorities further allege that the cryptocurrency was transferred through multiple digital asset exchanges and cryptocurrency mixing services to conceal its origin before being converted into fiat currency and deposited into a foreign bank account.
