MV Capital - Prisoner Faces New Charges Over $290K Crypto Laundering Plot

Rossen Iossifov, already serving time for a major fraud case, stands accused of directing the movement of forfeited cryptocurrency assets from prison through mixers and exchanges

Background of the Case

Rossen Iossifov, a 53-year-old Bulgarian national, received new federal charges in the Eastern District of Kentucky. Prosecutors allege that in January 2024, while incarcerated, he took part in a conspiracy to transfer approximately $290,000 in cryptocurrency that a court had already ordered forfeited.

The assets in question were held in a Kraken account registered to Iossifov and had been restrained as part of prior proceedings. According to the Department of Justice, the funds moved through multiple cryptocurrency exchanges and mixing services in an effort to stop the government from taking possession.

Key DetailsIossifov allegedly conspired to withdraw and transfer the assets to avoid seizure.
The activity occurred while he served a sentence from his 2021 conviction.
Charges include removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering.

Prior Conviction and Operations

Iossifov previously owned and operated RG Coins, a cryptocurrency exchange based in Sofia, Bulgaria. In 2021, a jury convicted him of racketeering conspiracy and money laundering conspiracy tied to the Alexandria Online Auction Fraud network.

This Romanian-linked group posted fake listings for vehicles and other high-value items on sites such as eBay and Craigslist. The operation affected at least 900 victims in the United States. Court records indicate Iossifov laundered nearly $5 million in cryptocurrency over less than three years and earned more than $184,000 personally from these activities.

Following the conviction, the court sentenced him to 111 months in federal prison and ordered more than $2.6 million in restitution to victims along with forfeiture of the cryptocurrency assets now central to the new case.

 “Iossifov’s deliberate attempt to remove and launder lawfully seized funds is a direct challenge to our justice system and a blatant disregard to his victims’ rights.” 
Special Agent in Charge Robert Holman, USSS Louisville Field Office

New Charges and Potential Penalties

The latest indictment accuses Iossifov and others of actions intended to conceal the movement of the funds. Mixing services, which combine transactions from various sources, played a role in the alleged scheme according to prosecutors.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division noted that defendants who disregard court orders from earlier cases will face additional prosecution. The new charges carry a maximum penalty of 25 years in prison if a conviction results.

Case Timeline2021: Conviction for racketeering and money laundering in fraud network.
Sentencing: 111 months in prison and forfeiture orders issued.
January 2024: Alleged conspiracy to move $290,000 in restrained crypto.
July 2026: New charges filed by federal prosecutors.

The U.S. Secret Service investigated both the original case and the recent allegations. The Department of Justice has not provided details on how the account was accessed or whether any funds were ultimately recovered.

Broader Context in Enforcement Actions

This matter forms part of ongoing efforts to address attempts to interfere with court-ordered forfeitures in cryptocurrency cases. Authorities continue to pursue individuals involved in schemes that use digital assets to move illicit proceeds.

Iossifov appeared in court on the new charges and maintains the presumption of innocence until proven guilty. The case proceeds in the Eastern District of Kentucky under federal prosecutors.

Aspect	Details
Amount Involved	Approximately $290,000
Primary Services Used	Crypto exchanges and mixing services
Prior Laundering Volume	Nearly $5 million
Maximum New Penalty	Up to 25 years