US charges prisoner over alleged laundering of seized Kraken crypto
US prosecutors charged Rossen Iossifov, a Bulgarian man already serving a federal sentence, over the alleged removal and laundering of about $290,000 in crypto held in a Kraken account that was subject to a forfeiture order. DOJ says he conspired in January 2024 to withdraw and transfer the assets before the government could seize them, allegedly routing funds through mixing services and exchanges. Iossifov was previously convicted of racketeering and money laundering tied to an online auction fraud scheme that victimized at least 900 people. He also operated RG Coins, a crypto exchange prosecutors say helped convert criminal proceeds into crypto and cash. The new charges include removing property to prevent seizure and money laundering conspiracy, carrying a maximum penalty of 25 years. The case reflects growing scrutiny of crypto tools used to obscure illicit money flows.
