Bulgarian Cryptocurrency Exchange Owner Convicted of Fraud Conspiracy

A Bulgarian crypto exchange owner has been convicted of money laundering and fraud.

Eastern European nations have been experiencing an upsurge in cryptocurrency adoption and innovation regarding blockchain development in their respective countries. Now, a US court has convicted a Bulgarian cryptocurrency exchange owner over a conspiracy involving money laundering for a notorious Eastern European cyber fraud syndicate, Cointelegraph reported.

Rossen Iossifov, 53, is the Bulgarian owner of the cryptocurrency exchange RG Coins. He went to trial for operating a scheme involving multi-million dollar money laundering in a transactional auction fraud operation. After a two-week trial in Frankfort, Kentucky, Iossifov was found guilty of conspiracy to commit money laundering and racketeering. The accused, who is a resident of the US state of Kentucky, will face sentencing in January 2021.

Tripwire further reported that the conviction, handed down by a federal jury, involved Iossifov scheming 900 Americans out of their capital in an international online auction fraud scheme.

Reportedly, members of the conspiracy based in Romania had used the stolen identities of numerous Americans to place false advertisments on a number of internet trading websites, such as Craigslist, eBay, and other such platforms.

The conspiracy members then sent out falsified invoices bearing the trademarks of various reputable organisations to potential customers. Upon receiving payment from customers, conspiracy members called upon other members based in the United States to accept the funds. They then converted them into digital currency and sent that cryptocurrency abroad to money launderers.

US law enforcement officials have detained 17 suspects in this investigation, while three fugitives apparently remain on the run.

This comes after a US court recently convicted two Russians of similar offences. There have also been reports that illegal Chinese gambling syndicates are draining the Chinese economy.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.