Prisoner Moves $290K Crypto Despite Court Order

A 53‑year‑old Bulgarian inmate, already serving a lengthy sentence for a major crypto laundering case, faces fresh charges after allegedly moving $290,000 in cryptocurrency that the court had forced him to surrender.

New Allegations

• Removal of Property – The inmate is accused of taking assets out of custody to avoid seizure.
• Aiding and Abetting – He is alleged to have helped others in the scheme.
• Conspiracy to Launder Money – The plan involved moving the forfeited crypto through a network of exchanges and mixing services designed to obscure its origin.

How It Happened

In January 2024, prosecutors claim he plotted with accomplices to:

1. Extract the court‑surrendered crypto from his custody.
2. Transfer it through a chain of exchanges and mixers.
3. Disguise the funds’ trail, allowing them to escape government control.

Context: A Broader Crackdown

• The case is part of a nationwide effort to clamp down on digital‑currency fraud.
• The DOJ’s Criminal Division warns that anyone who defies court orders in previous cases will face additional charges.
• The Secret Service, which investigated both incidents, called the alleged transfers a “direct challenge” to the courts and to victims who lost money.

Background on Iossifov

• Former CEO of RG Coins – A Bulgarian crypto exchange.
• 2011‑2021 Conviction – Racketeering and money‑laundering ties to a U.S. online auction scam that defrauded ~900 victims on eBay and Craigslist.
• Financial Tactics – Converted proceeds into cash after moving crypto through overseas launderers.
• Trial Evidence – He moved nearly $5 million in crypto over three years and was ordered to pay $2.6 million in restitution plus forfeit the crypto now at issue.

Potential Consequences

• Additional 25 Years – If found guilty on these fresh charges, the sentence could stack on top of his current 111‑month term.
• Justice Department’s Track Record – Since 2020, the cybercrime unit has secured convictions against more than 180 digital‑crime offenders and reclaimed over $350 million for victims.