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Bulgarian exchange owner convicted over auction fraud scheme

Bulgarian exchange owner convicted over auction fraud scheme

Rossen Iossifov, a 53-year-old Bulgarian nationwide and proprietor of the ‘RG Cash’ cryptocurrency alternate, has been convicted of working a multi-million greenback cash laundering ring as a part of a transnational public sale fraud scheme.

Following a two-week trial Iossifov was discovered responsible by a federal jury in Frankfort, Kentucky, of conspiracy to commit cash laundering and conspiracy to commit racketeering. The Kentucky resident will face sentencing on Jan. 12, 2021.

The jury discovered that at the very least 900 U.S. residents have been conned in a scheme that noticed Iossifov’s Romania-based accomplices publish ads on well-liked public sale platforms like eBay and Craigslist for high-value items comparable to autos that didn’t exist.

In keeping with a Division of Justice launch, scammers would supply their victims with fraudulent paperwork and invoices that includes the logos of respected firms to domesticate the looks of legitimacy, and even employed name facilities and “help workers” to alleviate their patrons’ considerations.

As soon as they’d acquired cost, Iossifov would convert the funds into crypto belongings and switch the proceeds to off-shore cash launderers. The jury discovered that Iossifov knowingly offered companies to the legal syndicate from at the very least September 2015 till December 2018 — exchanging greater than $4.9 million value of Bitcoin for 4 different members of the group.

Arrests have been carried out by U.S. state and federal authorities with help offered by the Romanian Nationwide Police and the Romanian Company for Prosecuting Organized Crime.

Iossifov is the 17th defendant to have been convicted within the case, with three different fugitives at present at giant. Multiple dozen of the defendants have been extradited from Romania.

RG Cash was based in April 2014, with the web site promoting {hardware} wallets and facilitating cryptocurrency alternate for the Japanese European area.

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