A man already sitting in federal prison for laundering millions in Bitcoin allegedly decided that wasn’t enough. US prosecutors have indicted Rossen G. Iossifov on new charges for allegedly moving roughly $290,000 in crypto from a seized Kraken account, all while serving a sentence for his previous conviction.
The Department of Justice announced the indictment on July 9, with prosecutors in the Eastern District of Kentucky laying out charges including conspiracy to commit money laundering, destruction or removal of property to prevent seizure, and aiding and abetting. If convicted, the 53-year-old former Bulgarian national faces up to 25 additional years behind bars.
From prison cell to crypto transfers
According to the indictment, between January and December 2024, approximately $290,000 in crypto assets were transferred out of a Kraken account that had been subject to forfeiture orders. The funds were allegedly routed through various exchanges and mixers, the crypto equivalent of running cash through a maze of shell companies to make it untraceable.
The indictment includes aiding and abetting charges, suggesting he didn’t act alone. The US Secret Service and DOJ are handling the investigation.
