The US court found guilty of money laundering and participation in a multi-million-dollar fraud scheme targeting residents of the United States.
According to the U.S. Department of Justice, Iosifov knowingly facilitated the laundering of funds obtained from fraudulent activity. At least five of Iosifov’s major clients belonged to the Romanian criminal group AOAF, which organized a network for online-auction fraud.
According to court documents, victims of Iosifov and his associates’ criminal scheme numbered no less than 900 residents of the United States.
The perpetrators posted fake listings for expensive goods on popular online auctions that did not actually exist. After receiving payment, the funds were converted into cryptocurrency and then laundered.
Iosifov’s activity was aimed at servicing criminal groups — for example, AOAF members were offered more favorable exchange rates.
According to prosecutors, Iosifov laundered about $5 million through cryptocurrencies over three years, earning $184,000 for his services.
He was sentenced to 121 months in prison.
Earlier in the U.S. court found guilty of organizing a fraud scheme by Gemcoin founder Steve Chen.
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