DOJ charges inmate over alleged $290K theft of forfeited crypto
The Justice Department charged Rossen G. Iossifov with arranging the unauthorized transfer of about $290,000 in cryptocurrency seized and forfeited to the U.S. government.
Rossen G. Iossifov, a 53-year-old Bulgarian national serving a federal sentence, was charged this week with removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering, the Justice Department stated. He appeared in federal court in the Eastern District of Kentucky earlier this week.
Prosecutors allege that in January 2024 Iossifov and others arranged the transfer of roughly $290,000 in forfeited cryptocurrency through several exchanges and through illicit mixing services while he was serving a 111-month prison term. The indictment says the transfers were intended to keep the assets from government control.
The new case is tied to Iossifov’s 2021 conviction in the Eastern District of Kentucky for his role in an online auction fraud scheme. Prosecutors allege that earlier scheme laundered nearly $5 million in cryptocurrency and resulted in an order forfeiting digital assets and $2,642,297.43 in victim restitution.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division noted: “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.”
If convicted on the current counts, Iossifov faces a statutory maximum of 25 years in prison. The indictment treats attempts to move or conceal forfeited property as separate criminal conduct intended to deprive the government of lawfully seized assets.
The Justice Department did not identify the exchanges or mixing services involved and did not indicate whether any co-conspirators have been charged. The charges were filed in the Eastern District of Kentucky, where both the prior conviction and the recent appearance occurred.
The matter is pending in federal court and further proceedings will determine whether prosecutors can prove the allegations. The Justice Department released its statement on Thursday.
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