The US Justice Department says a prisoner serving a nine-year sentence for money laundering conspired to move about $290,000 in cryptocurrency in January 2024 after a court ordered the assets forfeited to the United States.

The case highlights a potential gap between a court’s forfeiture order and the government obtaining control of assets that can still be transferred.

Until an agency obtains practical control of the wallet, someone with valid access may still be able to send the assets elsewhere.

In a July 9 announcement, the Justice Department said Rossen Iossifov allegedly routed the cryptocurrency through multiple exchanges and illicit mixing services, preventing the United States from obtaining possession.

Iossifov owned…