A Bulgarian national already serving a federal sentence for fraud has been hit with new charges in the United States over allegations that he moved nearly $290,000 in cryptocurrency that had previously been forfeited to the government.

Case centers on forfeited assets

The U.S. Department of Justice said Rossen G. Iossifov, 53, is accused of transferring digital assets that were subject to a forfeiture order entered after his earlier conviction. Prosecutors allege the cryptocurrency, worth about $290,000, should have been surrendered to the government as part of the penalties tied to his prior case.

According to court documents cited by the Justice Department, the alleged conduct took place in January 2024. At that time, Iossifov was already in prison serving a 111-month sentence imposed after his 2021 conviction for his role in what authorities described as a multimillion-dollar fraud scheme that targeted victims in the United States.

Prior fraud conviction and penalties

The earlier case resulted in more than prison time. Iossifov was also ordered to pay more than $2.64 million in restitution, and the cryptocurrency connected to the offense was ordered forfeited. The new criminal case stems from the government’s claim that he then conspired to relocate part of that crypto despite the forfeiture order.

The DOJ alleges that the funds were routed through multiple digital asset exchanges and through mixing services. Prosecutors say those steps were taken to obstruct the government’s efforts to take possession of the assets.

New charges filed

Federal prosecutors have charged Iossifov with removal of property to prevent seizure and conspiracy to commit money laundering. The department said the charges relate specifically to the alleged movement of the forfeited cryptocurrency while he was already in custody.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said the defendant is accused of moving cryptocurrency obtained from the earlier crime in violation of a court-ordered forfeiture. Duva also said the department would pursue charges against defendants who ignore legally entered court orders and other parts of their criminal sentences.

Potential sentence and broader significance

If convicted on the new counts, Iossifov faces a maximum penalty of 25 years in prison. The charges do not establish guilt, and the allegations will have to be tested in court.

The case underscores how forfeiture orders tied to financial crime can continue to generate criminal exposure even after a defendant has been sentenced. In this instance, prosecutors contend that the use of exchanges and crypto mixing services was part of an effort to keep government-seized assets out of federal control after the original fraud case had already ended in conviction and restitution orders.

Source: dailyhodl.com