A Bulgarian national, **Rossen G. Iossifov**, 53, has been charged with stealing $290,000 in government-seized cryptocurrency. This alleged theft occurred while he was serving a 121-month prison sentence for his role in laundering millions stolen from American fraud victims. **Iossifov** appeared in federal court in the Eastern District of Kentucky this Wednesday, facing charges of removal of property to prevent seizure and conspiracy to commit money laundering. “**Iossifov**’s deliberate attempt to remove and launder lawfully seized funds is a direct challenge to our justice system and a blatant disregard to his victims’ rights,” stated **U.S. Secret Service (USSS)** Special Agent **Robert Holman** in a Thursday press release. “We are committed to ensuring that victims of online fraud receive justice, and that individuals who attempt to circumvent lawful court orders are held accountable.” ### The Prison-Based Crypto Heist Prosecutors allege that in January 2024, while incarcerated for a 2021 conviction, **Iossifov** conspired with others to move $290,000 in cryptocurrency. The funds were siphoned from a seized account and subsequently routed through multiple crypto exchanges and mixing services in an attempt to keep them out of the government's reach. ### Background: The Alexandria Online Auction Fraud Network **Iossifov**'s previous conviction stemmed from his ownership and operation of **RG Coins**, a cryptocurrency exchange based in Sofia, Bulgaria. This exchange served as a crucial conduit for Romanian members of the **Alexandria Online Auction Fraud Network**, a criminal ring that defrauded at least 900 Americans. Members of this network posted fraudulent advertisements on platforms like **Craigslist** and **eBay** for non-existent high-value goods, primarily vehicles. Once victims made payments, the funds were converted into cryptocurrency, which **Iossifov** then transferred to foreign money launderers. Evidence presented in court indicated that **Iossifov** specifically tailored his business to accommodate criminal clientele. He reportedly offered favorable exchange rates to fraudsters and allowed members of the criminal ring to exchange cash for cryptocurrency without requiring identification or documentation of the source of funds. According to court documents, **Iossifov** collected over $184,000 in fees after laundering nearly $5 million for four network members in less than three years. ### Legal Ramifications The court had previously ordered **Iossifov** to pay over $2.6 million in restitution to victims of the earlier scheme and to forfeit the cryptocurrency involved in the new case. If convicted of the new charges, **Iossifov** could face an additional maximum sentence of 25 years in prison.