The proprietor of a Bulgarian bitcoin alternate has been sentenced to jail in the USA for his involvement in a transnational multimillion-dollar on-line public sale fraud scheme that conned over 900 Individuals 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 Court docket Choose Robert E. Weir sentenced 53-year-old Bulgarian native Iossifov to 121 months in jail.
Iossifov owned and managed RG Cash, a cryptocurrency alternate 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 purchasers have been Romanian scammers, who belonged to a felony enterprise referred to in courtroom information because the Alexandria (Romania) On-line Public sale Fraud (AOAF) Community.
These scammers defrauded tons of of people by posting false ads to common on-line public sale and gross sales web sites, together with Craigslist and eBay, for high-cost items (usually 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,” stated the Division of Justice.
“Iossifov was one such foreign-based cash launderer who facilitated this ultimate step within the scheme.”
Iossifov allowed his felony purchasers to finish cryptocurrency exchanges for money with out asking for any identification or documentation to indicate the supply of funds. He additionally gave members of the AOAF Community particular remedy by offering them with extra favorable alternate charges than he supplied to his different clients.
An investigation by legislation enforcement discovered that Iossifov laundered practically $5m in cryptocurrency for 4 of the 5 scammers in fewer than three years. In return, the bitcoin alternate proprietor revamped $184,000.
Iossifov is considered one of 17 members of AOAF who’ve been convicted for his or her function on this scheme up to now.