Bulgarian National Charged with Conspiracy to Launder $290K in Forfeited Cryptocurrency While Serving Prison Sentence
On Thursday, July 9, 2026, the U.S. Department of Justice announced that Rossen G. Iossifov, a 53-year-old Bulgarian national, has been charged with the destruction or removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering.
The charges are in connection with the alleged unauthorized withdrawal and transfer of approximately $290,000 in cryptocurrency that had been seized and forfeited by the United States.
Iossifov, who is currently serving a federal prison sentence, made an initial appearance in federal court in the Eastern District of Kentucky. The cryptocurrency in question was ordered forfeited to the United States following Iossifov's 2021 conviction in the same district for his involvement in a widespread online auction fraud scheme that targeted U.S. victims.
According to court documents, Iossifov allegedly conspired to move the forfeited cryptocurrency in January 2024. The scheme involved transferring the funds through multiple cryptocurrency exchanges and illicit mixing services in an attempt to prevent the United States from taking possession of the assets.
At the time of these alleged offenses, Iossifov was serving a sentence of 111 months in prison for his prior conviction. Evidence presented during his previous trial and sentencing indicated that he had laundered nearly $5 million in cryptocurrency over a period of less than three years. He was ordered to pay $2,642,297.43 in restitution to victims of that earlier scheme and to forfeit the cryptocurrency that is now the subject of the current charges.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division stated that defendants who disregard lawful court orders and portions of their sentences will face charges for such obstructive conduct.
First Assistant U.S. Attorney Jason Parman for the Eastern District of Kentucky emphasized that Iossifov's alleged actions represent a direct challenge to the authority of federal courts and an attempt to undermine the rule of law.
Special Agent in Charge Robert Holman of the U.S. Secret Service (USSS) Louisville Field Office added that Iossifov's deliberate attempt to remove and launder lawfully seized funds is a direct challenge to the justice system and a disregard for victims' rights.
If convicted of the current charges, Iossifov faces a maximum penalty of 25 years in prison.
