Rossen G. Iossifov, 53, a Bulgarian national, made an initial appearance in federal court in the Eastern District of Kentucky yesterday on charges of the destruction or removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. The charges stem from Iossifov’s alleged role in the unauthorized withdrawal and transfer of approximately $290,000 in cryptocurrency that had been seized and forfeited by the United States.
“Having been convicted of a widespread online auction fraud scheme targeting U.S. victims, Iossifov is now charged with moving cryptocurrency that he obtained from that crime, in violation of a court’s forfeiture order,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Defendants who flout lawfully entered orders and portions of their criminal sentences in prior federal cases will be charged with such obstructive conduct. The Department of Justice will take all steps to ensure that justice is served for victims of complex financial crimes.”
“Iossifov’s alleged efforts to evade a lawful forfeiture order and obscure the movement of criminal proceeds represent a direct affront to the authority of the federal courts,” said First Assistant U.S. Attorney Jason Parman for the Eastern District of Kentucky. “Such conduct, if proven, reflects a calculated attempt to undermine the rule of law and to compromise the rights of victims who have already suffered significant financial harm. Our office remains steadfast in its commitment to protecting the integrity of judicial orders and ensuring that individuals who engage in sophisticated schemes to obstruct justice are held fully accountable.”
“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,” said the Special Agent in Charge Robert Holman of the U.S. Secret Service (USSS) Louisville Field Office. “We are committed to ensuring that victims of online fraud receive justice, and that individuals who attempt to circumvent lawful court orders are held accountable.”
According to court documents, in January 2024, Iossifov allegedly conspired to remove $290,000 in cryptocurrency that had been ordered forfeited to the United States after Iossifov’s 2021 conviction in the Eastern District of Kentucky. In the instant case, Iossifov is alleged to have conspired to transfer the forfeited cryptocurrency through multiple cryptocurrency exchanges and illicit mixing services, avoiding the United States obtaining possession of the funds.
At the time of the alleged offenses, Iossifov was serving a sentence of 111 months in prison for his 2021 conviction, during which he participated in a fraud scheme that victimized Americans. Evidence submitted at trial and his sentencing in the previous case revealed that Iossifov had laundered nearly $5 million in cryptocurrency in a period of less than three years. Iossifov had been ordered to pay $2,642,297.43 in restitution to victims of the earlier scheme and to forfeit the cryptocurrency that is the subject of the instant offense.
Iossifov is charged with removal of property to prevent seizure and conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 25 years in prison.
The investigation was conducted by the USSS. The Justice Department’s Office of International Affairs provided significant support.
CCIPS investigates and prosecutes cybercrime and intellectual property (IP) crime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cyber and IP criminals, and court orders for the return of over $350 million in victim funds.
This case is being prosecuted by Senior Counsel Vasantha Rao of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kathryn M. Dieruf for the Eastern District of Kentucky.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
