The DOJ crypto charge against Rossen G. Iossifov centers on an alleged $290,000 cryptocurrency transfer involving assets ordered forfeited after a prior conviction.
Key Takeaways
- Prosecutors said the alleged January 2024 conduct involved about $290,000 in cryptocurrency.
- DOJ said Iossifov was already serving a 111-month prison sentence from a 2021 conviction.
- The agency said an indictment is an allegation and defendants are presumed innocent.
July 10 (Crypto-News.Net) – A DOJ crypto charge accuses a federal inmate of helping move approximately $290,000 in forfeited cryptocurrency that had been ordered turned over to the United States after his earlier conviction.
Rossen G. Iossifov, 53, a Bulgarian national, made an initial appearance July 8 in federal court in the Eastern District of Kentucky, according to the DOJ Office of Public Affairs release. DOJ said he is charged with removal of property to prevent seizure and conspiracy to commit money laundering.
DOJ crypto charge alleges transfers through mixers
According to court documents cited by DOJ, Iossifov allegedly conspired in January 2024 to remove $290,000 in cryptocurrency that had been ordered forfeited after his 2021 conviction in the Eastern District of Kentucky.
Prosecutors alleged he conspired to transfer the forfeited cryptocurrency through multiple cryptocurrency exchanges and illicit mixing services, tools used to obscure crypto transaction trails. DOJ said the alleged transfers were intended to prevent the United States from taking possession of the funds. Crypto-News.Net has covered crypto crime forensic tools used in broader law-enforcement and compliance work involving digital assets.
DOJ said the charges stem from an alleged unauthorized withdrawal and transfer. The public release did not name an exchange or describe how Iossifov allegedly accessed the cryptocurrency.
Prior conviction forms case background
DOJ said Iossifov was serving a 111-month federal prison sentence at the time of the alleged conduct. The sentence followed a 2021 conviction in which DOJ said he participated in a fraud scheme that victimized Americans.
The agency said evidence submitted at trial and sentencing in the earlier case showed Iossifov had laundered nearly $5 million in cryptocurrency in less than three years. DOJ also said he was ordered to pay $2,642,297.43 in restitution and to forfeit the cryptocurrency that is the subject of the new alleged offense.
Maximum penalty and legal status
If convicted in the new case, Iossifov faces a maximum penalty of 25 years in prison, DOJ said. A federal district court judge would determine any sentence after considering federal sentencing guidelines and statutory factors.
The U.S. Secret Service conducted the investigation, DOJ said. DOJ's Office of International Affairs provided support. 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 only an allegation. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Reporting by Zoran Spirkovski. Editing by Crypto-News.Net.
Sources
DOJ Office of Public Affairs – Supports the current charges, defendant identity, alleged amount, forfeiture context, prior-case background, investigating agencies, maximum penalty and presumption of innocence. The DOJ release is cited in the second paragraph.
