- US prosecutors charged a federal inmate with stealing and laundering $290,000 in crypto from a court-ordered forfeiture account at Kraken.
- The defendant, Rossen Iossifov, was previously convicted for running an online auction fraud network that laundered nearly $5 million in crypto.
- The new charges, carrying up to 25 years in prison, highlight increased enforcement against laundering crypto after forfeiture orders.
United States prosecutors have charged a federal inmate with allegedly removing and laundering about $290,000 in crypto assets from a Kraken account subject to a forfeiture order. The Department of Justice said Rossen Iossifov, a Bulgarian national, conspired in January 2024 to withdraw the assets following his 2021 conviction.
Prosecutors allege the funds were moved through illicit mixing services and exchanges before the US could take possession. The US Attorney’s Office for the Eastern District of Kentucky said the crypto was held in an account at Kraken and had been restrained during the investigation.
Iossifov was previously Bitcoin-exchange-sentenced-prison-money-laundering” rel=”nofollow noopener”>convicted of racketeering and money laundering conspiracy for his role in an online auction fraud network that victimized at least 900 Americans. Prosecutors said he owned RG Coins, which converted criminal proceeds into crypto and cash, and he laundered nearly $5 million in crypto.
The court had ordered Iossifov to pay over $2.6 million in restitution and forfeit his crypto assets. He is now charged with removing property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering.
The charges come as authorities intensify scrutiny of crypto infrastructure used to obscure illicit flows. Interpol said a wallet tied to a suspected romance-scam launderer processed over $122 million using cross-chain swaps.
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