The owner of an exchange found guilty of fraud and money laundering

IN BRIEFS

  • The owner of a crypto exchange has been convicted of several counts associated with a fraudulent transaction.
  • The Romanian-based criminal syndicate organised fake auctions, then used cryptomonnages to launder the stolen funds.
  • Three alleged accomplices are still at large and the sentence has been set for 12 January 2021.

According to court documents, Mr. Iossifov was convicted on one count of conspiracy to commit racketeering and one count of conspiracy to launder money for his role in an international fraudulent auction system.

Elaborate fraud

According to the statement, Mr. Iossifov and his accomplices had :

The fraudulent auctions were run by a criminal network based in Romania which placed fake Bitcoin Method on sites such as Craigslist and eBay for high-value goods (often vehicles) that did not exist. The scammers would then try to convince their victims to send money for the advertised goods.

To achieve this, they would have developed persuasive stories, used the brands of reputable companies and set up customer service systems to gain the trust of their victims.

The press release stated that once the victim had been duped and the money sent, Iossifov and his Romanian associates would have :

Verdict

After a two-week trial, the jury found that Mr Yossifov had knowingly worked with the crime syndicate at least from September 2015 to December 2018. He thus made it possible to change more than 4.9 million dollars into Bitcoin for the organisation’s members.

Mr. Iossifov is the 17th person to be arrested in this case. Three alleged participants are still at large and the sentence has been set for 12 January 2021.

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