According to the United States Justice Department on Tuesday, Iossifov and other RG Coins principal actors participated in an elaborate money laundering conspiracy that defrauded at least 900 Americans to the tune of over $7 million.
According to Cointelegraph, as part of the scam, Iossifov and other co-conspirators would advertise on major auction channels such as Craigslist and eBay for non-existent luxury items. The funds from this operation were routinely routed via crypto payments to criminal organizations.
The Justice Department communique also revealed that Iossifov laundered money for the AOAF, a known cybercrime syndicate based in Eastern Europe. In general, Iossifov allegedly allowed almost $5 million in dirty money to pass through the RG Coins platform in exchange for cryptocurrencies.
Despite assertions to the contrary, Iossifov’s RG Coins platform based in Bulgaria did not mandate any Know Your Customer compliance. The convicted Bulgarian also allegedly earned $184,000 from the proceeds of these money laundering transactions.
Of the 20 principal actors of the RG Coins money laundering scheme, 17 have so far been convicted. Iossifov’s prison term is the longest of the seven people sentenced thus far. Authorities are still on the hunt for the three fugitives still at large.
As a federal prisoner in the U.S., Iossifov will have to serve at least 85% of his 121-month prison sentence.