The owner of Bulgarian cryptocurrency exchange RGCoins is awaiting extradition to the US. The news broke as the website of the company announced that it is closing its doors. The exchange is relatively small and has focused on the Eastern-european market.
According to the formal extradition request made by the US authorities, the charges are related to the actions of 14 Romanian citizens. According to the Kentucky Attorney General, one of the individuals was a client of the crypto exchange.
Romanian Connection
The documents sent by US authorities investigating a crime committed by 14 Romanian citizens doesn’t include any evidence of the wrongdoings of the owner of RGCoins. Mr. Rosen Yosifov got arrested in his home in Sofia, Bulgaria on the 11th of December, 2018.
After reviewing the extradition request, the Bulgarian courts have approved the measure. The lack of any proof of Yosifov’s involvement in the scheme didn’t concern the court. The official opinion issued by the Sofia City Court is that it is reviewing the legitimacy
The charges made by the US authorities are that Yosifov participated in an organized crime group. His company, RGCoins allegedly exchanged Bitcoin of one of the 14 Romanian citizens. The claims made by the Kentucky Attorney General are that the exchange amounts to money laundering.
The Romanian citizens allegedly defrauded US citizens by posting fake ads in online auction platforms. The products sold during the auctions were never received by the buyers and the proceeds were misappropriated by the group of Romanian citizens.
After the group purchased Bitcoin in the US, one individual exchanged the cryptocurrency back into fiat via Yosifov’s exchange.
The Arrest
The Bulgarian law is currently not regulating cryptocurrency exchanges. The actions of the owner of RGCoins have been legal according to local rules and regulations and he is not facing charges in Bulgaria.
On the morning of December 11th, 2018 local law enforcement arrested Yosifov in his home. The family of the detainee states that the police didn’t present an arrest warrant and searched the premises confiscating all computers, mobile devices, and cash.
After escorting Yosifov from the premises they proceed to his company’s office where they confiscate all of the assets of the firm including employee salaries and client money. The law enforcement officials leave the arrest warrant at the company’s office.
Court Proceedings
After an initial court ruling on the 18th of December, on the 24th of January, the appeals court confirmed the extradition to the US. Yosifov is currently held in custody in Sofia despite suffering from chest pains.
The local law enforcement authorities are not informing the family when is Yosifov going to get extradited to the US. Bulgarian authorities have been notoriously famous for their . The country , an alleged multi-level marketing scheme whose offices got raided about a year ago.
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