RGCoin, a small-scale Bitcoin exchange service based in Bulgaria is under investigation – Rossen Yosifov, the founder, is reportedly facing extradition to the US after it was suggested by a Kentucky court that he aided the activity of a money laundering group. Their website states that all activity has been suspended indefinitely. Yosifov has not faced extradition yet, although the latest verdict has forced the issue closer towards it. He may face up to 20 years in prison for financial crimes.
This case is related to the earlier arrest of Vlad Nistor, the founder of the Romanian-based bitcoin exchange service, CoinFlu, who still has a website that clearly states ‘Trading disabled, bank account frozen’ – Nistor was connected to a group of fourteen Romanian nationals who allegedly used RGCoins in association with money laundering. RGCoins denies knowing the aim of the Romanian transactions, stating that an order of Bitcoin was exchanged as it was for multiple regional or international clients.
The forceful arrest, search and seizure of computers and assets were outlined in a statement posted on the RGCoins news page by Yosifov’s daughter, Victoria Yosifova-Kaneva. She contends that he is innocent, and said (translation): “I will let you find the relationship between the client, organized criminal group and money laundering, because I do not find it – neither logical nor US-sent documents and evidence. Such are simply missing”.
Bitcoin Exchange Money Laundering Suspect Faces Extradition
The demand for extradition caused a backlash on Bulgarian social media with many complaining about the ability of the US judicial system to apprehend foreign nationals. Ms Yosifova-Kaneva continues to deny that her father has had any involvement in money-laundering and that in Bulgaria, he has committed no crime. “Yosifov registered a trading company in Bulgaria with its main activity of buying and selling virtual currencies in 2015. Since then, he has been doing business on the territory of the Republic of Bulgaria and has thousands of clients,” she said. “I would like to reiterate once again that according to Bulgarian legislation, the activity in question is normal, legal and does not require licensing”.