Bulgarian Crypto Exchange Owner Sentenced To 10 Years In Prison For Laundering $5 Million

A Bulgarian citizen was sentenced to ten years in prison after a major crypto-related fraud. Not long ago, the man was convicted under a multi-million dollar scheme for defrauding more than 900 Americans.

The Auction Scam that scammed over 900 Americans

According to an official announcement by the United States Department of Justice, Rossen G. Yossifov, a 53-year-old man, has deceived hundreds of Americans.

He manages and promotes so-called RG Coins – a cryptocurrency exchange headquartered in Sofia, Bulgaria. Now, a US court has convicted him of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) plus conspiracy to launder money.

During the crime, Iossifov and his Romanian co-conspirators, part of the Alexandria Online Auction Fraud Network (AOAF), carried out a large-scale online fraud. They organized a fake auction that cost the lives of at least 900 Americans during the process.

As reported, Iossifov was officially accused of participating in and dictating international fraud a few months ago.

Providing Profitable Crypto Exchange Rates to Victims

According to court documents, the fraudsters made everything look legit, providing their victims with invoices bearing the trademarks of reputable companies.

One of the main ways to lure people into scams is that the conspirators devise their schemes to serve criminal enterprises by providing better exchange rates to AOAF Network members.

The Romania-based scammer posts false advertisements to popularize online auctions for expensive goods and vehicles that don’t exist. They have also established customer support to offer customer support to answer client questions and “reduce advertising concerns.”

When convinced, the victim must fulfill the payment. The criminal’s domestic counterpart will receive the money, convert it into cryptocurrency, and transfer it to foreign-based money laundering. As per the announcement, Iossifov was the last fixture to facilitate the final stages of the scheme.

Some evidence reveals that, in less than three years, Iossifov has laundered nearly $5 million in cryptocurrency for just four of his partners.

“This represents more than $7 million in funds conned from American victims. In return, Iossifov made more than $184,000 in proceeds from this transaction.”

court media official publication

Apart from Iossifov and five co-operators, so far, 17 other members of the Romanian crime network will face trial for their role in the scheme. The other seven have faced sentences with sentences ranging from 30 to 96 months. Three of the other scam members are currently fugitives.

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