Bulgarian exchange owner convicted over auction fraud scheme

Rossen Iossifov, a 53-year-old Bulgarian nationwide and proprietor of the ‘RG Cash’ cryptocurrency trade, has been convicted of working a multi-million buck 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 means 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 a minimum of 900 U.S. electorate have been conned in a scheme that noticed Iossifov’s Romania-based accomplices put up commercials on in style public sale platforms like eBay and Craigslist for high-value items similar to automobiles that didn’t exist.

In keeping with a Division of Justice free up, scammers would offer their sufferers with fraudulent paperwork and invoices that includes the emblems of respected corporations to domesticate the illusion of legitimacy, or even hired name facilities and “reinforce group of workers” to relieve their patrons’ issues.

When they had gained cost, Iossifov would convert the budget into crypto property and switch the proceeds to off-shore cash launderers. The jury discovered that Iossifov knowingly supplied services and products to the felony syndicate from a minimum of September 2015 till December 2018 — exchanging greater than $four.nine million price of Bitcoin for 4 different individuals of the group.

Arrests have been performed by means of U.S. state and federal government with help supplied by means 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 massive. Multiple dozen of the defendants have been extradited from Romania.

RG Cash used to be based in April 2014, with the website online promoting hardware wallets and facilitating cryptocurrency trade for the Jap Ecu area.

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