Why has the US charged Rossen Iossifov over cryptocurrency laundering?

US prosecutors allege Rossen Iossifov conspired to launder about US$290,000 in seized cryptocurrency while serving a prison sentence. They claim he tried to stop authorities from recovering assets that had already been ordered forfeited.

What was Rossen Iossifov previously convicted of?

Rossen Iossifov was convicted in 2021 of racketeering and money laundering conspiracy. Court records said he helped launder nearly US$5 million through his Bulgaria-based crypto exchange, RG Coins.

How did prosecutors say the cryptocurrency was moved?

Prosecutors allege the cryptocurrency was transferred through several exchanges and crypto mixers. They said these transactions were designed to hide the funds and prevent their recovery by US authorities.

What penalties could Rossen Iossifov face if convicted?

If convicted, Rossen Iossifov could face up to 25 years in prison on the new charges. The indictment includes removal of property to prevent seizure and conspiracy to commit money laundering.

Image for illustrative purposes only. Not a real photo.

US charges fraudster over crypto laundering plot

Q: What restitution was Rossen Iossifov ordered to pay?

Following his 2021 conviction, Rossen Iossifov was ordered to forfeit the seized cryptocurrency and pay US$2.6 million in restitution. The payment was intended to compensate victims of the online auction fraud scheme.

Written by Brie CarterPublished Jul 10, 2026, 8:13 AM

US prosecutors charged a jailed fraudster with trying to launder US$290,000 in seized cryptocurrency.
The alleged scheme took place while he was serving a prison sentence.
If convicted, he could face up to 25 more years in prison.

US prosecutors have charged Bulgarian national Rossen Iossifov with conspiring to launder about US$290,000 in cryptocurrency that had already been seized by authorities.

Prosecutors said Iossifov tried to move the funds in January 2024 while serving a US prison sentence for fraud and money laundering.

“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,” said US Secret Service Special Agent in Charge Robert Holman.

Court records show Iossifov was convicted in 2021 for helping launder nearly US$5 million through his Bulgaria-based crypto exchange, RG Coins.

The court also ordered him to forfeit the cryptocurrency and pay US$2.6 million in restitution to victims of an online auction fraud scheme.

Prosecutors said the seized funds were moved through several crypto exchanges and mixers to hide their trail and prevent recovery.

Iossifov now faces new charges of removing property to prevent seizure and conspiracy to commit money laundering, although the allegations have not been proven in court.