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<ul>
 <li>U.S. prosecutors accused Rossen Iossifov of moving $290,000 in forfeited cryptocurrency while serving his federal prison sentence through exchanges.</li>
 <li>According to the Justice Department, investigators allege he used cryptocurrency mixing services to conceal transactions violating an existing court forfeiture order.</li>
 <li>The new indictment builds on Iossifov’s 2021 fraud conviction and carries a maximum additional prison sentence of 25 years.</li>
</ul>
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A convicted cryptocurrency fraudster is facing new federal charges after U.S. prosecutors accused him of moving nearly $290,000 in forfeited digital assets while serving a prison sentence. <a href="https://www.justice.gov/opa/pr/man-serving-federal-prison-sentence-charged-theft-forfeited-cryptocurrency" rel="noopener noreferrer nofollow">According to the U.S. Department of Justice</a>, Rossen G. Iossifov allegedly transferred the cryptocurrency through multiple exchanges and mixing services in an effort to prevent the U.S. government from taking possession of assets tied to his earlier conviction. 
Iossifov, a 53-year-old Bulgarian national, appeared before the U.S. District Court for the Eastern District of Kentucky earlier this week. Prosecutors charged him with removal of property to prevent seizure, aiding and abetting, and conspiracy to commit money laundering. 
According to the DOJ, the alleged transfers took place in January 2024, nearly three years after Iossifov’s 2021 conviction in the same federal district. Investigators claim he moved cryptocurrency that had already been seized and forfeited under a court order. 
Authorities allege he used several cryptocurrency exchanges and illicit mixing services to conceal the movement of the funds. Prosecutors believe the transactions were intended to prevent the U.S. government from taking possession of the forfeited assets while he remained incarcerated. 
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<h2 id="new-charges-build-on-earlier-multi-million-dollar-crypto-fraud-conviction">New Charges Build on Earlier Multi-Million Dollar Crypto Fraud Conviction</h2>
The latest case stems from Iossifov’s role in an online auction fraud scheme that led to his conviction in 2021. Prosecutors said the operation laundered nearly $5 million in cryptocurrency over less than three years while targeting victims across the United States. 
The earlier conviction resulted in a sentence of 111 months in federal prison. In addition, the court ordered Iossifov to pay $2,642,297.43 in restitution to victims and forfeit assets connected to the criminal proceeds. Federal prosecutors now argue that the cryptocurrency allegedly moved in 2024 formed part of those forfeited assets. Consequently, they contend the transfers violated the court’s forfeiture order and created a separate criminal offense. 
Assistant Attorney General A. Tysen Duva said the <a href="https://36crypto.com/crypto-fraudster-lost-1m-of-investors-money-in-gambling-scheme-faces-21-charges/" rel="noopener noreferrer nofollow">government considers</a> the alleged transfers a direct violation of the forfeiture order issued after Iossifov’s conviction. He stated that the defendant is accused of moving cryptocurrency obtained through the earlier fraud scheme despite the court’s ruling. 
Moreover, investigators allege the use of cryptocurrency mixing services complicated efforts to trace the movement of the digital assets. Authorities continue pursuing the case under federal criminal statutes governing asset forfeiture and money laundering. 
<h2 id="conviction-could-add-decades-to-existing-prison-sentence">Conviction Could Add Decades to Existing Prison Sentence</h2>
The new indictment significantly raises Iossifov’s legal exposure beyond his existing prison term. If convicted on all current charges, he faces a maximum additional sentence of 25 years in prison. The Justice Department has not <a href="https://36crypto.com/teens-drive-600-miles-for-violent-crypto-heist-end-up-in-jail-on-felony-charges/" rel="noopener noreferrer nofollow">disclosed whether the government</a> recovered the allegedly transferred cryptocurrency. However, prosecutors maintain that the assets remained subject to federal forfeiture throughout the alleged transactions. 
The latest indictment extends the legal fallout from Iossifov’s earlier cryptocurrency fraud conviction. Federal prosecutors now seek to prove that he unlawfully moved forfeited digital assets while in prison, potentially exposing him to decades of additional imprisonment if found guilty. 
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The post <a href="https://36crypto.com/doj-alleges-convicted-fraudster-moved-290000-in-forfeited-crypto-from-prison/" rel="noopener noreferrer nofollow">DOJ Alleges Convicted Fraudster Moved $290,000 in Forfeited Crypto From Prison</a> appeared first on <a href="https://36crypto.com" rel="noopener noreferrer nofollow">36Crypto</a>.

DOJ Alleges Convicted Fraudster Moved $290,000 in Forfeited Crypto From Prison

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