The U.S. Department of Justice has charged Rossen G. Iossifov, a Bulgarian national already serving a 111-month federal sentence, with conspiring to move approximately $290,000 in cryptocurrency that a court had ordered forfeited to the government. Prosecutors allege that in January 2024, while incarcerated, Iossifov directed the funds through multiple cryptocurrency exchanges and mixing services to prevent the government from seizing the assets.
The new charges include removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. Iossifov appeared in the Eastern District of Kentucky court this week. The funds stem from his 2021 conviction for laundering nearly $5 million through his Sofia-based exchange, RG Coins, as part of the Alexandria Online Auction Fraud network that defrauded over 900 U.S. victims.
Assistant Attorney General A. Tysen Duva stated that defendants who “flout lawfully entered orders” from earlier cases will face additional prosecution. The U.S. Secret Service investigated, calling the transfers a direct challenge to the courts. If convicted on the latest charges, Iossifov could face up to 25 additional years in prison. The case highlights the operational difficulties authorities face in securing digital assets even after a forfeiture order, as private keys and wallet access remain critical.
