Rossen Iossifov, owner of the RG Coins crypto coin exchange platform, was sentenced to 10 years in prison for money laundering.
A federal jury in Frankfort, Kentucky found the Bulgarian national guilty of conspiracy to racketeer and money laundering in September 2020. The guilty verdict came after only two weeks of probation.
According to the U.S. Department of Justice on Tuesday, Iossifov and other key RG Coins actors participated in an elaborate money laundering conspiracy that defrauded at least 900 Americans of more than $7 million.
As part of the scam, Iossifov and other co-conspirators advertised on major auction channels, such as Craigslist and eBay, for non-existent luxury items. Funds from this operation were routinely diverted through cryptocurrency to criminal organizations.
The Justice Department release also revealed that Iossifov laundered money for AOAF, a well-known cybercrime syndicate based in Eastern Europe. In total, Iossifov reportedly allowed nearly $5 million in dirty money to pass through the RG Coins platform in exchange for cryptocurrencies.
Despite claims to the contrary, Iossifov's Bulgarian-based RG Coins platform has not ordered any Know Your Customer compliance. The convicted Bulgarian also reportedly made $184,000 from the proceeds of these money laundering transactions.
