Bulgarian exchange owner convicted over auction fraud scheme

Rossen Iossifov, a 53-year-old Bulgarian nationwide and proprietor of the ‘RG Cash’ cryptocurrency change, has been convicted of working a multi-million greenback cash laundering ring as a part of a transnational public sale fraud scheme.

Following a two-week trial Iossifov used to be discovered in charge by way of a federal jury in Frankfort, Kentucky, of conspiracy to devote cash laundering and conspiracy to devote racketeering. The Kentucky resident will face sentencing on Jan. 12, 2021.

The jury discovered that no less than 900 U.S. electorate have been conned in a scheme that noticed Iossifov’s Romania-based accomplices publish commercials on standard public sale platforms like eBay and Craigslist for high-value items comparable to automobiles that didn’t exist.

In line with a Division of Justice unencumber, scammers would offer their sufferers with fraudulent paperwork and invoices that includes the logos of respected firms to domesticate the semblance of legitimacy, or even hired name facilities and “make stronger group of workers” to relieve their patrons’ issues.

After they had gained fee, Iossifov would convert the finances into crypto property and switch the proceeds to off-shore cash launderers. The jury discovered that Iossifov knowingly supplied products and services to the felony syndicate from no less than September 2015 till December 2018 — exchanging greater than $four.nine million price of Bitcoin for 4 different contributors of the group.

Arrests have been performed by way of U.S. state and federal government with help supplied by way of the Romanian Nationwide Police and the Romanian Company for Prosecuting Arranged Crime.

Iossifov is the 17th defendant to had been convicted within the case, with 3 different fugitives lately at huge. A couple of dozen of the defendants have been extradited from Romania.

RG Cash used to be based in April 2014, with the web page promoting hardware wallets and facilitating cryptocurrency change for the Jap Eu area.

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