121 months behind bars, Rossen G. Iossifov is now accused of attempting to take more money from the very system that convicted him — allegedly moving $290,000 in government-seized cryptocurrency while serving a prison sentence for an earlier money‑laundering scheme.
Charges filed in the Eastern District of Kentucky
Federal prosecutors in the Eastern District of Kentucky charged 53‑year‑old Rossen G. Iossifov with removal of property to prevent seizure and conspiracy to commit money laundering. According to court filings reported by investigators, the new indictment alleges that in January 2024 Iossifov conspired with others to move roughly $290,000 of cryptocurrency that the government had seized.
How prosecutors say the $290,000 was moved
The complaint alleges the funds were moved out of a seized account and routed through multiple cryptocurrency exchanges and mixing services to keep them from falling under government control. The filing characterizes those steps — transfers between exchanges and the use of mixing services — as efforts to conceal the funds’ origin and to frustrate lawful forfeiture.
Background: RG Coins and the Alexandria Online Auction Fraud Network
Prosecutors tied Iossifov’s earlier conviction to his ownership and operation of RG Coins, a cryptocurrency exchange based in Sofia, Bulgaria. Court documents say RG Coins counted among its clients Romanian members of the Alexandria Online Auction Fraud Network, a ring that victimized at least 900 Americans.
According to the filings, members of that network posted fabricated advertisements on Craigslist and eBay for non‑existent high‑value goods, typically vehicles; when victims paid, the conspirators converted the proceeds into cryptocurrency. The court record says Iossifov then transferred those crypto proceeds to foreign money launderers.
Investigators allege Iossifov tailored RG Coins to accommodate criminal customers: offering favorable exchange rates and allowing cash‑for‑cryptocurrency trades without identification or documentation of the source of funds. The filings say he collected more than $184,000 after laundering nearly $5 million for four network members in under three years.
Restitution, forfeiture, and potential penalties
The earlier conviction resulted in a court order requiring Iossifov to pay more than $2.6 million in restitution to victims of the Alexandria network scheme and to forfeit cryptocurrency tied to that conduct. For the new charges related to the alleged removal of seized cryptocurrency, prosecutors say Iossifov faces a potential maximum sentence of 25 years in prison if convicted.
What this means for the U.S. Secret Service, victims, and cryptocurrency exchanges
- The U.S. Secret Service: In a Thursday press release Special Agent Robert Holman said, "Iossifov's deliberate attempt to remove and launder lawfully seized funds is a direct challenge to our justice system and a blatant disregard to his victims' rights." The agency framed the prosecution as part of its effort to ensure victims of online fraud receive restitution and to hold accountable those who attempt to circumvent court orders.
- Victims of the Alexandria network: Court documents show judges already ordered more than $2.6 million in restitution tied to Iossifov’s earlier conviction, and prosecutors are pursuing forfeiture of the cryptocurrency at issue in the new matter — both actions aimed at restoring funds to identified victims.
- Cryptocurrency exchanges: The indictment highlights prosecutors’ focus on transactional flows — movement through multiple exchanges and mixing services — as a pathway alleged to have been used to frustrate seizure. Exchanges named in the filings are described as links in that chain; the case underscores how prosecutors trace multi‑platform transfers when pursuing seized assets.
The new charges place the earlier conviction and forfeiture orders back in sharp relief: prosecutors say a convicted operator of a cryptocurrency exchange used industry tools — exchanges and mixers — to try to shield seized assets while serving a prison term. The U.S. Secret Service has publicly framed the prosecution as a defense of victims’ rights and of lawful court orders; the indictment now asks a court to determine whether those protections were unlawfully evaded.
