Bitcoin Exchange Owner Convicted in Multi-Million Dollar Online Fraud Scheme
The owner of a Bitcoin exchange has been convicted in connection with a transnational multi-million-dollar online auction fraud scheme that targeted over 900 Americans. Rossen Iossifov, the owner of RG Coins based in Bulgaria, was found guilty of conspiracy to commit racketeering and conspiracy to commit money laundering after a two-week trial in the United States.
Elaborate Fraud Scheme
Court documents revealed that Iossifov entered into a fraudulent scheme to launder money for criminals in Romania. The scheme involved posting non-existent goods for sale online and deceiving Americans into paying for them with fake stories. The criminals used fictitious online accounts, stolen identities, and fake invoices with reputable company trademarks to make the transactions seem legitimate. They even set up call centers to address victims’ concerns.
Money Laundering Through Cryptocurrency
Through RG Coins, Iossifov exchanged over $4.9 million worth of Bitcoin into local fiat currency for members of the criminal enterprise. The money laundered through the exchange was part of the millions of dollars generated by the fraudulent scheme. The Romania-based members of the conspiracy posted false advertisements on popular online auction sites, convincing victims to send money for non-existent high-cost goods like vehicles.
Sentencing and Remaining Defendants
Iossifov is set to be sentenced on January 12, 2021, for his involvement in the fraud scheme. Three other defendants indicted in connection with the case are still at large. The Department of Justice emphasized the elaborate tactics used by the criminals to deceive and defraud American victims, highlighting the importance of vigilance when engaging in online transactions.