CyberNews Briefs

RG Coins cryptocurrency exchange owner lands 10 years behind bars for money laundering

Rossen Iossifov was the Bulgarian owner of RG coins and has been sentenced to 10 years in prison. He was sentenced after his actions of laundering millions of dollars from defrauded victims. The stolen money was converted to cryptocurrency and moved through cryptocurrency exchanges to hide the source of the cash. 

The scheme began with criminals in Romania with an online auction scam that brought in at least 900 US citizens. Craigslist and eBay were used in this scam with expensive items, such as cars, that did not exist. When a customer won an auction and sent their money, it was converted to cryptocurrency and sent on. Iossifov was a money launderer who facilitated the steps after the cryptocurrency was sent to him. 

Iossifov’s exchange was in Sofia, Bulgaria, and was favorable to at least five members of the Alexandria Online Auction Fraud network who would receive positive exchange rates for clients in the criminal ring. The exchange also did not require any ID or proof of source for the funds, leaving no evidence or ties to the fraudulent money. Approximately $5 million in cryptocurrency was laundered for the AOAF clients in three years. After law enforcement agencies of US, Romania, and Bulgaria investigated, 17 AOAF members, including Iossifov, have been convicted.

Read more: RG Coins cryptocurrency exchange owner lands 10 years behind bars for money laundering

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