Rosen Iossifov, proprietor of cryptocurrency change RGcoins, was convicted by a federal jury in Kentucky of two counts of conspiracy to commit racketeering and cash laundering. The conviction got here after a two-week trial the place Iossifov was accused of orchestrating a classy scheme to steal cash from unsuspecting victims in America after which launder their funds utilizing cryptocurrency.
The founding father of the small-scale Bulgarian change, which was closely targeted on native Japanese European shoppers, caught the attention of the US investigators final yr as a result of suspicions that he helped a Romanian cash laundry gang.
Iossifov is predicted to obtain his sentence on January 12, 2021. He would possibly resist twenty years in jail, three years of supervised launch and a wonderful of $250,000.
In line with courtroom paperwork, Iossifov and his co-conspirators victimized at the least 900 People via phishing assaults between 2014 and 2015. They posted faux commercials to on-line public sale and gross sales web sites, reminiscent of Craigslist and eBay, for high-cost items that didn’t really exist. The merchandise offered in the course of the auctions have been by no means obtained by the patrons and the proceeds have been misappropriated by a gaggle of 14 Romanian residents, who then used RGCoins to launder the stolen cash by buying Bitcoin
Nevertheless, RGCoins founder claims that he was not conscious of the truth that the Romanians have been concerned in legal actions and solely used its service to launder their proceeds.
Rosen Iossifov was arrested in Bulgaria in 2018 and was extradited to the USA in 2019 in order that the case may very well be additional investigated abroad the place the trial passed off.
Nevertheless, the US authorities stated he was conscious of the intention of the transactions made by the Romanian fraudsters. Whereas RGCoins had a limitation of 5 BTC for nameless orders, Iossifov exchanged over $4.9 million price of Bitcoin for simply 4 different members of the legal enterprise with out implementing know-your-customer authentication procedures.
“In line with courtroom paperwork, as soon as victims have been satisfied to ship cost, the conspiracy members engaged in an advanced cash laundering scheme whereby home associates would settle for sufferer funds, convert these funds to cryptocurrency, and switch proceeds within the type of cryptocurrency to foreign-based cash launderers,” US prosecutors stated.
The RGCoins case was associated to the sooner arrest of Vlad Nistor, CEO of Coinflux, a high crypto change working in Romania. Moreover, he was handed over to the US authorities after proof offered to an area courtroom that related him to the identical group of 14 named Romanians.
Nistor’s and Iossifov’s arrest got here amidst a sequence of US operations towards crypto criminals in Europe, together with Alexander Vinnik, an alleged Russian hacker accused of laundering $Four billion of legal proceeds via BTC-e.