A 53-year aged Bulgarian national & owner of the ‘RG Coins’ cryptocurrency exchange, Rossen Iossifov, has been found guilty of operating an MLM money laundering ring as a part of a transnational auction fraud scheme.
Following a 2-week trial, Iossifov was found guilty by a federal jury within Frankfort, Kentucky, of conspiracy to commit illegal laundering & conspiracy to commit racketeering. The Kentucky resident will face sentencing on 12th Jan, next year.
The jury found that over 900 Unites States individuals were conned within the fraud scheme that saw Iossifov’s Romania-based accomplices post advertisements on renowned auction platforms like eBay and Craigslist for high-value goods like vehicles that didn’t exist.
In line with the Department of Justice release, scammers would offer their victims with fraudulent documents and invoices featuring the trademarks of reputable companies to cultivate the looks of legitimacy, and even employed call centers & “support staff” to alleviate their buyers’ concerns.
Once the payment was received, Iossifov converted the funds into cryptocurrencies and transfer the proceeds to off-shore money launderers. The jury found that Iossifov knowingly offered services to the criminal syndicate from September 2015 till December 2018 – exchanging over $4.9 Mln worth of Bitcoin [BTC] for 4 other members of the organization.
Native United States Police proceeded with the arrests with the assistance of federal authorities provided by the Romanian National Police as well as the Romanian Agency for Prosecuting Organized Crime.
Iossifov is one among the 17th known defendant to have been convicted within such a case, with 3 other fugitives presently at large. While over a dozen other defendants were extradited from Romania.
RG Coins was launched earlier in April 2014, with the official website selling hardware wallets & facilitating crypto exchange for the Eastern European regions.