The proprietor of a Bulgarian bitcoin change has been sentenced to jail in the US for his involvement in a transnational multimillion-dollar on-line public sale fraud scheme that conned over 900 People out of greater than $7m.
After a two-week trial in September 2020, a federal jury in Kentucky discovered Rossen G. Iossifov guilty of 1 rely of conspiracy to commit racketeering and one rely of conspiracy to commit cash laundering. On January 12, US District Courtroom Choose Robert E. Weir sentenced 53-year-old Bulgarian native Iossifov to 121 months in jail.
Iossifov owned and managed RG Cash, a cryptocurrency change headquartered in Bulgaria’s capital metropolis, Sofia. In accordance with trial proof, Iossifov knowingly and deliberately engaged in enterprise practices designed to each help fraudsters in laundering the proceeds of their fraud and to guard himself from any felony legal responsibility.
No less than 5 of Iossifov’s principal shoppers have been Romanian scammers, who belonged to a felony enterprise referred to in court docket data because the Alexandria (Romania) On-line Public sale Fraud (AOAF) Community.
These scammers defrauded a whole bunch of people by posting false ads to standard on-line public sale and gross sales web sites, together with Craigslist and eBay, for high-cost items (sometimes autos) that didn’t really exist.
“As soon as victims have been satisfied to ship fee, the conspiracy engaged in a sophisticated cash laundering scheme whereby home associates would settle for sufferer funds, convert these funds to cryptocurrency, and switch proceeds within the type of cryptocurrency to foreign-based cash launderers,” mentioned the Division of Justice.
“Iossifov was one such foreign-based cash launderer who facilitated this ultimate step within the scheme.”
Iossifov allowed his felony shoppers to finish cryptocurrency exchanges for money with out asking for any identification or documentation to point out the supply of funds. He additionally gave members of the AOAF Community particular therapy by offering them with extra favorable change charges than he supplied to his different clients.
An investigation by legislation enforcement discovered that Iossifov laundered almost $5m in cryptocurrency for 4 of the 5 scammers in fewer than three years. In return, the bitcoin change proprietor remodeled $184,000.
Iossifov is considered one of 17 members of AOAF who’ve been convicted for his or her position on this scheme to this point.