Konstantin Ignatov, the leader of OneCoin, was arrested in March 2019 at the Los Angeles International Airport for running the massive cryptocurrency fraud. The New York court was scheduled to sentence Konstantin Ignatov this month, but the judge rescheduled the sentencing date to 8th July on the government’s request. Earlier, American lawyer Mark Scott was charged for helping OneCoin launder money raised in the fraudulent ICO.
“Konstantin Ignatov’s cooperation is not yet complete”
Konstantin Ignatov was arrested in March 2019, and since then, he has been helping the law enforcement uncover one of the largest cryptocurrency fraud. Konstantin, with his sister Ruja Ignatova and others, made representations about OneCoin, and, as a result, victims from around the world invested billions of dollars in the fraudulent cryptocurrency company. Konstantin might face up to 20 years in prison for his role in the OneCoin crypto scam. He assumed high-level positions at the company and rose to the top leadership position by mid-2018.
The mastermind behind OneCoin, Ruja Ignatova, is still on the run
The face of OneCoin, who is known as the mastermind behind this major crypto scam, Ruja Ignatova, is still in hiding. Law enforcement has failed to find her whereabouts so far. OneCoin operates as a multi-level marketing (MLM) network through which members receive commissions for recruiting others to invest in cryptocurrency packages.
This MLM structure helped in the rapid growth of the OneCoin member network. It claimed to have more than 3 million members around the world, including victims living and working within the Southern District of New York. It is speculated that OneCoin scammed over $4 billion from investors around the world. The company presented the cryptocurrency as an alternate and a better version of bitcoin.
The company claimed that the cryptocurrency is mined using mining servers maintained and operated by them, and its value is based on market supply and demand, but it turned out that OneCoins are not mined using computer resources, and its value is decided internally.