The sentence is delivered
Rosen Iossifov, owner of the RG Coins exchange, was sentenced to 10 years in prison. The stock market no longer exists. It has been proven that the exchange he runs was used to launder money using Bitcoin.
The fraud involved using the stock exchange to conclude and conduct false auctions, persuade interested persons to invest, and transfer their funds to hide money from the authorities.
On January 12, 2021, the United States Department of Justice (DOJ) issued a statement saying that Iossifov “knowingly and intentionally engaged in business practices designed to both help fraudsters launder the proceeds of their fraud. and how to protect yourself from criminal liability ”.
The convict maintained that he did not know about the criminal practice. The authorities proved that the procedure was conducted under his supervision, because the 5 BTC limit for anonymous transactions was constantly being violated. The amounts transferred were much larger without customer authentication and transactions to KYC.
What was the scam?
Fake auctions were announced on platforms such as eBay. The subjects of the offers were luxury products such as sports cars, which in reality were not there. When the transaction was finalized and the buyer paid the appropriate amount of money, the funds were transferred to cryptocurrency accounts that were located on various exchanges, and then converted into digital currency. These activities were intended not only to hide the money, but also to prevent the authorities from knowing its source.
The investigation revealed that Isossifov has laundered nearly $ 5 million in Bitcoin for 4 out of 5 members of the criminal organization in less than 3 years. In total, 1 people were involved in the procedure