Image Credit: Kraken
U.S. prosecutors have charged Rossen G. Iossifov, a man already serving a federal prison sentence, over the alleged removal and laundering of about $290,000 in crypto held in a Kraken account.
The Justice Department said Iossifov appeared in federal court in Kentucky on charges tied to crypto assets that had already been restrained and ordered forfeited to the United States.
Kraken Account Was Under Forfeiture Order
The charges stem from Iossifov’s earlier conviction in an online auction fraud and money laundering case. As part of that sentence, a federal court ordered Iossifov to forfeit cryptocurrency held in a Kraken account registered in his name.
The account held about $290,000 in crypto and had been restrained during the criminal investigation. Prosecutors now say Iossifov and others tried to move those funds before the government could take control of the account.
DOJ Says Funds Moved Through Mixers
The indictment covers conduct between January and December 2024. Prosecutors allege Iossifov conspired with others to move the crypto from the Kraken account and frustrate the court’s forfeiture order.
The funds were allegedly routed through multiple crypto exchanges and illicit mixing services before being converted into fiat currency at a foreign bank account. The Justice Department did not say how the account was accessed while Iossifov was in custody. It also did not say whether the full amount has been recovered.
Earlier Case Involved 900 US Victims
Iossifov was already serving a 111-month sentence for racketeering conspiracy and money laundering conspiracy. The earlier case involved an online auction fraud network that victimized at least 900 Americans.
Romania-based members posted fake listings for high-value goods, often vehicles, on sites such as Craigslist and eBay.
Victims sent payment for goods that did not exist. Domestic associates then converted the funds into crypto and sent them to foreign-based money launderers, including Iossifov. Evidence at his earlier trial and sentencing showed he laundered nearly $5 million in cryptocurrency in less than three years.
Iossifov Faces New Seizure and Laundering Charges
Iossifov is charged with removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. The indictment remains an allegation.
Iossifov has not been convicted of the new charges and is presumed innocent unless proven guilty. The case remains pending in federal court in Kentucky.
