A Bulgarian national already serving a federal prison sentence for online auction fraud now faces fresh charges over the alleged theft of cryptocurrency that a court had ordered him to forfeit, the Department of Justice announced on July 9.<\/p>\n
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.<\/p>\n
Prosecutors allege that Iossifov played a role in the unauthorized withdrawal and transfer of roughly $290,000 in cryptocurrency that the United States had seized and forfeited following his earlier conviction, a form of obstruction that echoes other crypto laundering cases the DOJ has pursued<\/a> through exchanges and mixing services.<\/p>\n Court documents state<\/a> that Iossifov conspired in January 2024 to remove $290,000 in cryptocurrency that a court had ordered forfeited to the United States after his 2021 conviction in the Eastern District of Kentucky. Prosecutors allege he moved the funds through multiple exchanges and illicit mixing services to keep the government from taking possession of them.<\/p>\n Iossifov was serving a 111-month sentence for the 2021 conviction when the alleged offenses took place, a case in which he targeted American victims through a fraud scheme. Evidence at his earlier trial showed that he had laundered nearly $5 million in cryptocurrency across less than three years. A court had ordered him to pay $2,642,297.43 in restitution and to forfeit the cryptocurrency now at the center of the new charges.<\/p>\n First Assistant U.S. Attorney Jason Parman for the Eastern District of Kentucky described the alleged conduct as an affront to the authority of the federal courts. Special Agent in Charge Robert Holman of the U.S. Secret Service Louisville Field Office characterized the alleged laundering of seized funds as a disregard for victims’ rights, a concern that has driven large-scale DOJ recovery efforts<\/a> elsewhere.<\/p>\n Iossifov faces a maximum penalty of 25 years in prison if convicted. The U.S. Secret Service conducted the investigation, with support from the Justice Department’s Office of International Affairs.<\/p>\n 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 are prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty.<\/p>\n The charges land amid a broader run of enforcement, from a $6.5 million California robbery spree<\/a> targeting crypto holders who were restrained and forced to surrender digital assets, to the extradition of an alleged Scattered Spider hacker<\/a>from Finland linked to network intrusions that generated more than $100 million in ransom payments.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" A Bulgarian national already serving a federal prison sentence for online auction fraud now faces…<\/p>\n","protected":false},"author":1,"featured_media":4671,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/posts\/4670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/comments?post=4670"}],"version-history":[{"count":0,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/posts\/4670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/media\/4671"}],"wp:attachment":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/media?parent=4670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/categories?post=4670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/tags?post=4670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}How the Iossifov Scheme Unfolded<\/h2>\n
What the Iossifov Charges Carry<\/h2>\n