Crypto Exchange Owner Sentenced to 10 Years in Prison for Multimillion-Dollar Program to Scam Americans – Regulating Bitcoin News

The US sentenced an owner of a cryptocurrency exchange to 10 years in prison. The Justice Department alleged that he had “knowingly and willfully engaged in business practices designed to both help fraudsters launder the proceeds of their fraud and to protect themselves from criminal liability.”

Crypto Exchange owners sentenced to 10 years in prison

The US Department of Justice (DOJ) announced Tuesday that an owner of a Bitcoin exchange had been sentenced to 121 months in prison “for his role in a multi-million dollar transnational program to defraud American victims.”

After his conviction in September last year, Rossen G. Iossifov was convicted of “conspiracy to commit an offense under the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit money laundering”.

Crypto Exchange Owners Sentenced To 10 Years In Jail For A Multimillion Dollar Program To Scam Americans

The DOJ stated that the 53-year-old Bulgarian national owned and managed a cryptocurrency exchange based in Sofia, Bulgaria called RG Coins. He allegedly “knowingly and intentionally engaged in business practices designed to help fraudsters launder the proceeds of their fraud and protect themselves from criminal liability”. The Justice Ministry alleged that at least five of its key customers were “Romanian scammers belonging to a criminal company known in court records as the Alexandria (Romania) Online Auction Fraud (AOAF) Network”.

Iossifov and his co-conspirators “participated in a large-scale online auction fraud that killed at least 900 Americans,” said the DOJ, adding that once payment was made, the victims:

The conspiracy resulted in a complicated money laundering system in which domestic workers accept funds from victims, convert those funds into cryptocurrency, and transfer proceeds in the form of cryptocurrency to money launderers based abroad.

“Iossifov was one such overseas launderer who made this final step in the plan possible,” the DOJ noted.

The Justice Department went on to claim that “Iossifov designed its business to suit criminal businesses, for example by offering cheaper exchange rates to members of the AOAF network,” and states:

Iossifov also allowed his criminal clients to conduct cryptocurrency exchanges for cash without the need for identification or documentation to prove the source of money, despite his contradicting representations to the major bitcoin exchanges that supported his business.

According to the DOJ, Iossifov laundered nearly $ 5 million in cryptocurrency for four scammers in less than three years. He also defrauded over $ 7 million on American victims and raised over $ 184,000 in proceeds from these transactions.

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american investors, bitcoin exchange, owners of bitcoin exchanges, bitcoin scam, bitcoin scam, bulgaria, crypto exchange, cryptocurrency exchange, jail, KYC, jail

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