Convicted scammer’s “seized” crypto moves to unknown wallets while in prison as DOJ failed to secure funds
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The US Justice Department says a prisoner serving a nine-year sentence for money laundering conspired to move about $290,000 in cryptocurrency in January 2024 after a court ordered the assets forfeited to the United States.
Key facts
- The US Justice Department says a prisoner serving a nine-year sentence for money laundering conspired to move about $290,000 in cryptocurrency in January 2024 after a court ordered the assets
- A November 2024 court order states that Iossifov received a 121-month sentence in January 2021, which was reduced to 111 months in May 2024
- DOJ says Iossifov had also been ordered to pay $2.64 million in restitution to victims of the earlier fraud scheme
- In a July 9 announcement, the Justice Department said Rossen Iossifov allegedly routed the cryptocurrency through multiple exchanges and illicit mixing services, preventing the United States
Summary
01 The DOJ says Rossen Iossifov conspired to move about $290,000 in crypto after a court forfeited it to the US. 02 The case shows a forfeiture order can exist before agents gain actual control of a wallet and its keys. 03 Prosecutors did not say where the crypto was held or how the transfer was made from prison. The case highlights a potential gap between a court’s forfeiture order and the government obtaining control of assets that can still be transferred.