A Bulgarian national already serving federal prison time for a multimillion-dollar online fraud scheme now faces new charges after allegedly conspiring to move cryptocurrency that had been seized by the U.S. government, according to the Justice Department.
Rossen G. Iossifov, 53, made an initial appearance in federal court in the Eastern District of Kentucky on charges of destruction or removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering, the Justice Department said. The charges stem from Iossifov’s alleged role in the unauthorized withdrawal and transfer of approximately $290,000 in cryptocurrency that had previously been seized and forfeited to the United States, prosecutors said.
According to court documents, Iossifov allegedly conspired in January 2024 to remove the cryptocurrency, which had been ordered forfeited following his 2021 conviction in the same district. Prosecutors allege he conspired to transfer the forfeited funds through multiple cryptocurrency exchanges and illicit mixing services in an effort to prevent the United States from obtaining possession of them.
At the time of the alleged conduct, Iossifov was serving a 111-month prison sentence for his role in a fraud scheme that victimized Americans through a widespread online auction fraud operation, according to the Justice Department. Evidence presented at his earlier trial and sentencing showed he had laundered nearly $5 million in cryptocurrency over less than three years, prosecutors said. He had also been ordered to pay more than $2.6 million in restitution to victims of that scheme.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said defendants who flout lawfully entered court orders and portions of their federal criminal sentences can be charged with obstructive conduct. First Assistant U.S. Attorney Jason Parman for the Eastern District of Kentucky said the alleged conduct represents a calculated attempt to undermine judicial authority and compromise victims’ rights, if proven. Special Agent in Charge Robert Holman of the U.S. Secret Service’s Louisville Field Office said the agency remains committed to ensuring that individuals who attempt to circumvent lawful court orders are held accountable.
If convicted, Iossifov faces a maximum penalty of 25 years in prison, the Justice Department said. The case was investigated by the Secret Service, with significant support from the department’s Office of International Affairs. It is being prosecuted by Senior Counsel Vasantha Rao of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kathryn M. Dieruf for the Eastern District of Kentucky.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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