Owner of Crypto Exchange RG Coins Gets 10 Years in Prison for Laundering $5M

The 53-year-old Bulgarian national was convicted for laundering funds via cryptocurrency for a fake online auctions gang.

AccessTimeIconJan 13, 2021 at 9:47 a.m. UTC
Updated Sep 14, 2021 at 10:55 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The owner and manager of cryptocurrency exchange RG Coins has been handed a lengthy prison term for his involvement in a multimillion-dollar scheme to defraud U.S. citizens.

According to a Tuesday press release from the Department of Justice, U.S. District Court Judge Robert Weir sentenced Rossen Iossifov to a 10-year sentence, 85% of which must be served behind bars under U.S. federal law.

The 53-year-old former Bulgarian national was sentenced for conspiracy to commit an offense under the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit money laundering.

Iossifov intentionally engaged in business designed to assist criminals in laundering proceeds of fraud and shielded himself from criminal liability, per the release.

Five of Iossifov's main clients in Bulgaria belonged to a criminal enterprise dubbed the Alexandria (Romania) Online Auction Fraud (AOAF) Network. So far, 17 members of the AOAF Network have been convicted for their roles in the scheme.

The online auction fraud gang targeted at least 900 U.S. citizens in a "large-scale" operation. Romanian-based members of AOAF posted false advertisements to online sales sites such as eBay and Craigslist for high-cost goods, typically vehicles, that did not actually exist.

After victims sent payment, the money was laundered using cryptocurrency accepted on behalf of domestic associates who would then transfer the cryptocurrency proceeds to foreign-based money launderers.

Iossifov undertook the last step in the scheme on behalf of the criminal network, the court found. In less than three years, Iossifov laundered close to $5 million in cryptocurrency for four of the five AOAF criminal co-conspirators.

More than $7 million in total was defrauded from U.S. victims via the scheme. In return, Iossifov made over $184,000 in proceeds from the transactions, according to the Department of Justice.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.