A federal court has convicted a bitcoin exchange owner of participating in an online scam auction.
On September 28, a Frankfort federal committee ruled that the Bulgarian national Rossen Iossifov, 53, is guilty of one count of conspiracy to commit robbery and one count of conspiracy to commit money laundering. This accusation reflected the role that Iossifov played in the international arena system auction fraud, which killed at least 900 Americans.
His Public Affairs Office Ministry Justice clarified the role played by Iossifov, owner of bitcoin exchange RG Coins based in Bulgaria, in a press release:
"At least from September 2015, until at least December 2018, exchanged cryptocurrencies in local fiat currency for account of the members of the conspiracy based in Romania, knowing that Bitcoin represented the proceeds of the illegal activity. "
The plot began when members of the Romanian-based conspiracy used stolen American IDs to insert fake car ads and other high-cost items into the CraigslistThe eBay and other auction sites. These ads used carefully crafted personal reports to try to trick the viewers into sending money for the advertised products.
Members of the conspiracy sent invoices bearing the trademarks of reputable organizations to interested customers. They just received it payment of one person, the members of the conspiracy then called on the associates to accept the money, turn it into cryptocurrencies and send it abroad for money laundering.
"According to the testimony of the trial, for example, over a period of about two and a half years, Iossifov exchanged Bitcoin worth more than $ 4,9 million for four more members of the criminal company. "
The District Judge of USA, Robert E. Wier, plans the sentencing of Iossifov for January 12, 2021.
The news of this decision came just a few weeks after the US authorities accused two Russian men of allegedly misleading cryptocurrency exchanges by their clients, worth at least $ 16,8 million.