The owner of RGCoins, a Bulgarian crypto exchange, Rosen Yosifov, has recently been extradited to the United States. The exchange, which was considerably small compared to the major ones of the market, was heavily focused on local Eastern European clients, but it had to shut its doors recently.
It looks like the company shutting down and the man being extradited are two related facts. According to the reports of local media outlets, a formal request for extradition was made by the government of the United States after the company was charged by American citizens which were allegedly defrauded by 14 Romanian citizens.
The Kentucky Attorney General has affirmed that one of the Romanians was a client of the exchange. The charges are of organized crime group. According to the US authorities, the Romanians accused the owner of RGCoins of exchanging Bitcoin for them in order to launder the money.
After that, the Romanian citizens defrauded US citizens with fake ads and the Americans complained, which took the case to the authorities of the US. The people who participated in the audience were never able to get any of the products, it seems, so buyers believe that they were robbed.
The Bulgarian courts have decided to approve the extradition in spite of lacking any actual evidence that the owner of the crypto company was actually guilty of the crimes that he was accused of. The Sofia City Court has affirmed that it is reviewing the case after arresting the entrepreneur, but he was extradited nevertheless.
According to the information we have at the moment, the main link between the man and the crime is that he traded Bitcoin for one of the criminals and then traded again, this time taking the Bitcoin and giving fiat currency for him, which could be seen as money laundering by the authorities.
Despite the considerable lack of evidence, the man had to go back to the United States and now he will be on trial for his alleged crimes. The US authorities believe that Yosifov participated in the group with the 14 Romanians.
As Bulgaria has not regulated cryptos, RGCoins was a fully legal company in the country up until it was shut down after the arrest. Bulgarian authorities are not known for being very friendly with crypto companies, though.
Yosifov was arrested on the morning of December 11. The police searched the premises and confiscated computers, cash and mobile devices at the time, but the family of the man complained that the cops did not have a search warrant when they arrested him.
After he was escorted to the police station, the police went to his company and confiscated all the assets from the company, as well as the money from clients and employee’s salaries.
It was decided soon that Yosifov should remain in custody until he was deported to the United States, what does not have a set date to happen yet. The family has once again complained that the authorities are not even informing them when the man will be extradited.