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Bulgarian Crypto Exchange Owner suffers 10 years in prison for laundering $5 Million

Bulgarian Crypto Exchange Owner suffers 10 years in prison for laundering $5 Million
Image by Prawny from Pixabay

The RG Coins crypto exchange platform owner, Rossen Iossifov, has been sentenced to 10 years imprisonment for money laundering. According to an official announcement by the US DOJ, Rossen Iossifov, a 53-year-old man, had duped hundreds of American citizens through a well-masterminded illegal attempt.

He maintained and developed the so-called RG Coins – a cryptocurrency exchange with its headquarters in Sofia, Bulgaria. Presently, the US court has convicted him for collaboration to perform a Racketeer Influenced and Corrupt Organizations Act (RICO) offense plus a plot to commit money laundering. Iossifov and his Romanian co-conspirators were a part of the AOAF (Alexandria Online Auction Fraud) Network. It involved a large-scale online fraud throughout the crime. They established a false auction that duped over 900 Americans through its course.

RG Coins Crypto Exchange fraudsters posted false advertisements

The initial court documents state that the scammers made everything appear legal. They offered invoices with well-known firms’ trademarks to their victims. One of the main ways to attract people into the scam was to plan their scheme to survey criminal enterprises. This is done through offering better exchange rates to the AOAF Network members. The Romania-based fraudsters posted deceptive advertisements. The advertisements familiarized online auctions for precious goods and vehicles that did not exist. They had also built call centers to allow consumer support to direct client questions and mitigate attention over the advertisements.

When established, victims had to fulfill a payment. Domestic associates of the offenders would receive the money, transform them into cryptocurrency, and transport them to foreign-based money launderers. As per the statement, Iossifov was the final apparatus that promoted the last stage of the scheme. Some of the trial’s testimony showed that Iossifov had laundered approximately $5 million in cryptocurrency in less than three years for just four of his associates.

Aside from Iossifov and the five co-operators, 17 more Romanian crime network members will face court for their role in this scheme. Seven others have already encountered sentences with verdicts from 30 to 96 months. However, three of the members of the scam are fugitives. Iossifov will have to complete at least 85% of his 121-month prison sentence, as he is a federal prisoner in the US.

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