Rossen Iosifov, the owner of a Bulgarian cryptocurrency exchange, received 10 years in prison for racketeering and money laundering.
Rossen Iosifov, who ran a Bulgarian cryptocurrency exchange, received 10 years in prison after being found guilty of helping a cybercrime syndicate launder money, writes Crypto New Media.
Cryptocurrency exchange operator RG Coins was found guilty of conspiracy to commit racketeering and money laundering last September (2020). He was found guilty just two weeks after his conviction.
In its recent verdict on Tuesday, the U.S. Justice Department found a cryptocurrency exchange operator guilty of engaging in an elaborate money-laundering conspiracy that stole more than $6.5 million in savings from more than 800 U.S. residents.
The Bulgarian national and his accomplice also placed advertisements on auction platforms such as Craigslist and eBay for luxury goods that never existed. Proceeds from these advertisements were transferred via cryptocurrency to their criminal organizations.
The Justice Department also punished Josephov for laundering money for AOAF, a notorious cybercrime syndicate based in Eastern Europe. The exchange operator transferred a total of $5 million in dirty money to the RG Coins platform in exchange for cryptocurrency.
His crypto platform was not subject to the “Know Your Customer” policy, as Josephoff himself earned $184,000 from the proceeds of these money-laundering transactions.
The RG Coins crypto exchange has 20 main employees, 17 of whom have been arrested. However, Iosifov’s sentence was the harshest, as authorities are still searching for other criminals who are still at large.+
Josephov was not the first cryptocurrency exchange operator jailed for money laundering and prosecuting criminals. Last year, Alexander Vinnik was imprisoned by a French court for aiding and abetting BTC electronic money laundering fraud.