The owner of RG Coins has been convicted of providing money-laundering by the US court
Rossen Iossifov, a 53-year-old, the owner of RG Coins, a Bulgaria-based Bitcoin exchange has been convicted of providing money-laundering services to an Eastern European cyber fraud syndicate.
Rossen Iossifov and his girlfriend.
Rossen Iossifov was found guilty on Monday for his role in a transnational and multi-million dollar scheme to defraud American victims through online auction fraud, according to a Department of Justice release.
According to court documents and evidence presented at trial, Iossifov and his co-conspirators participated in a criminal conspiracy that engaged in a large-scale scheme of online auction fraud that victimized at least 900 Americans. Specifically, Romania-based members of the conspiracy posted false advertisements to popular online auction and sales websites—such as Craigslist and eBay—for high-cost goods (typically vehicles) that did not actually exist. Members of the conspiracy would convince American victims to send money for the advertised goods by crafting persuasive narratives, for example, by impersonating a military member who needed to sell the advertised item before deployment.
The members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, often using the stolen identities of Americans to do so. They also delivered invoices to the victims bearing trademarks of reputable companies in order to make the transaction appear legitimate. Members of the conspiracy also set up call centers, impersonating customer support, to address questions and alleviate concerns over the advertisements.
From September 2015 to December 2018, Rossen Iossifov used RG Coins to exchanged cryptocurrency into local fiat currency on behalf of the Romania-based members of the conspiracy, knowing that the Bitcoin represented the proceeds of illegal activity. According to trial testimony, for example, in just the span of about two and a half years, Iossifov exchanged over $4.9 million worth of Bitcoin for just four other members of the criminal enterprise.
Rossen Iossifov is the 17th defendant to have been convicted in the case. More than one dozen of the defendants were extradited from Romania.
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