The owner of a Bulgarian bitcoin exchange service sentenced to imprisonment in the United States, for his involvement in scam and assisting criminals in money laundering.
Following a two-week trial in September 2020, the jury ruled in his favor Rossen G. Iossifov guilty of involvement in fraud and for money laundering from illegal activities. On January 12, the district court judge of USA, Robert E. Weir, condemned 53-year-old Bulgarian Iossifov in 121 months in prison.
The accused was the owner and administrator of the Bulgarian bitcoin exchange service RG Coins, based in Sofia. According to court figures, Iossifov knowingly assisted him Criminals to launder money from illegal activities and tried to protect himself from any criminal liability.
At least five of the key ones customers Iossifov were Romanian swindlers belonging to a criminal organization, which was referred to the court as Alexandria (Romania) Online Auction Fraud (AOAF) Network.
This group is said to have deceived hundreds of people through fake ads on popular auction and sales sites, including Craigslist and eBay. The swindlers were advertising high cost products (usually vehicles) that did not actually exist.
Once the victims were persuaded to send the money for the payment, the money laundering scheme began. The local partners accepted money from them victims, they converted them to cryptocurrencies and transferred them in this form to money laundering services abroad.
"Iossifov was one of the foreigners who undertook the money laundering and facilitated this last step of the project".
The Bulgarian defendant allowed them Criminals customers to make exchanges cryptocurrency in cash, without requesting any identification or documentation of the source of the money. Also, the members of the criminal organization AOAF Network had special treatment, with more favorable exchange rates than those that applied to other customers.
The authorities found that Iossifov helped launder $ 5 million in cryptocurrency for four of the five crooks, in less than three years. In return, the owner Bitcoin exchange service won over $ 184.000.
In addition to Iossifov, 16 other AOAF members have been convicted of involvement in the scam.
Source: Infosecurity Magazine