Crypto Exchange Owner Gets 10 Years for Turning Fake Car Auctions Into Bitcoin

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Crypto Exchange Owner Gets 10 Years for Turning Fake Car Auctions Into Bitcoin

 The Department of Justice stands in the early hours of Friday morning, March 22, 2019 in Washington, DC.

The Division of Justice stands within the early hours of Friday morning, March 22, 2019 in Washington, DC.
Picture: Picture by Drew Angerer (Getty Photos)

Bulgarian man Rossen G. Iossifov was sentenced to 10 years in U.S. federal prison January 12 for his position in a transnational scheme that stole thousands and thousands of {dollars} from a whole bunch of People.

Earlier than his downfall, Iossifov ran RG Cash, a cryptocurrency trade primarily based out of Sofia, Bulgaria that authorities say ceaselessly acted as a automobile to launder cash for a felony syndicate often known as the Alexandria On-line Public sale Fraud (AOAF) Community—a 20-person crime ring primarily based in Bucharest that stole from not less than 900 People through on-line public sale fraud schemes.

Members of the community usually posted commercials for pretend luxurious items (usually cars, apparently) on web sites like Craigslist and Ebay. As soon as unsuspecting consumers had forked over their money to the AOAF for the nonexistent merchandise, the criminals would have interaction in “an advanced cash laundering scheme whereby” the cash can be transformed into cryptocurrency after which transferred “to foreign-based cash launderers,” of which Iossifov was one. All instructed, the criminals had been mentioned to have stolen roughly $7 million from victims primarily based within the U.S.

The feds declare Iossifov performed an enormous position in these schemes, laundering virtually $5 million and making a private revenue of $184,000 within the course of. His enterprise practices had been “designed to each help fraudsters” and to “protect himself from felony legal responsibility,” the DOJ says. Consequently, Iossifov was convicted of “conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense and conspiracy to commit cash laundering.” A complete of 17 members of the AOAF crime ring have to this point been convicted for his or her crimes.

That is undoubtedly not the primary (or final!) felony conviction revolving round cryptocurrency. A report from digital asset intelligence agency CipherTrace released last year confirmed that the shady aspect of the digital foreign money economic system is booming—with fraud and different associated felony actions on the rise—and simply right this moment the President of the European Central Financial institution, Christine Lagarde, called for global regulation of Bitcoin, condemning its affiliation with “completely reprehensible cash laundering exercise.”

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