CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$31,020.00
  • ethereum
    ETH$1,149.66
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » OneCoin $4 Billion Ponzi Scheme: Founder’s Brother Eyes 90 Years in Jail

    OneCoin $4 Billion Ponzi Scheme: Founder’s Brother Eyes 90 Years in Jail

    Author: Jeffrey Francis

    Last Updated Nov 20, 2019 @ 10:12

    The cryptocurrency ecosystem is no stranger to scams and pyramid schemes. Exciting new technology, coupled with dramatically rising prices a few years ago, helped lure people into get-rich-quick schemes that only served to part them from their hard-earned money. One of the biggest cryptocurrency scams is OneCoin, which managed to take in almost US$4 billion. Now the OneCoin saga takes another turn as the brother of the cryptocurrency’s founder has pleaded guilty to money laundering and fraud charges in the United States.

    Win for Law Enforcement

    OneCoin was created by Ruja Ignatova in Bulgaria in 2014. The cryptocurrency saw remarkable success, shooting up in value from 29 euro cents to a stunning 29.95 euros from late 2014 to late 2016. The entire operation took in almost $4 billion, but the problem was that the entire operation seems to be a Ponzi scheme.

    Ruja Ignatov left the company in October 2017 when she disappeared. Her brother, Konstantin Ignatov, then took over the company. He was arrested in March 2019 at the Los Angeles Airport and initially charged with conspiracy to commit wire fraud. His sister was charged in absentia with securities fraud, money laundering, and wire fraud.

    Court documents have revealed that Konstantin Ignatov has pleaded guilty to fraud and money laundering. His plea agreement was signed on October 4 but was only made public on November 12. His agreement ensures that Konstantin will not face any further additional criminal charges related to OneCoin, although he is still liable for any criminal tax violations.

    Konstantin faces up to 90 years in prison, but such a sentence might be radically changed due to his cooperation with authorities. The court documents reveal that this testimony may “reveal activities of individuals who might use violence” against his family or him. The plea agreement hints at the possibility that he may be given a new identity and entered into the witness protection program. Ignatov is currently testifying in the trial of Mark Scott, a U.S. lawyer accused of laundering about $400 million in OneCoin funds through an Irish bank.

    As for his sister, Konstantin Ignatov revealed she told him she was afraid that someone close to her was going to give her up to the FBI. She also told him she was “very tired” and had taken possession of a “big passport” before asking him to buy her plane tickets to Vienna, Austria, and then Athens. Ignatov told authorities he has not seen or heard from his sister since she disappeared.

    OneCoin Under Pressure

    The United States is not the only country that is taking legal action against OneCoin and its supporters. Singapore designated the project a pyramid scheme and arrested two men promoting the coin back in April. The Monetary Authority of Singapore says the organizational structure of OneCoin violates the country’s Multi-Level Marketing and Pyramid Selling (Prohibition) Act. The two men face up to five years in prison and a maximum fine of $147,000.

    Chinese authorities spent two years investigating OneCoin, beginning in July 2016. Law enforcement eventually prosecuted 98 people involved in the scam and recovered $267.5 million. Prosecutors noted that the case was “complicated” and the amount of money involved as “huge” due to the scam taking place across 20 provinces in China.

    OneCoin denies all the charges that the company is a fraud and pyramid scheme, stating that “OneCoin verifiably fulfills all criteria of the definition of a cryptocurrency”.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • pyramid_scheme
      US DOJ Charges Five Men For Running $20 Million Bitcoin Ponzi Scheme
    • Dave_Portnoy
      Dave Portnoy Says Bitcoin is a Big Ponzi Scheme But He'll Be Back
    • Coinbase_usdc
      Coinbase Welcomes Andreessen Horowitz Co-Founder to Board of Directors
    Read more on: Crypto Scams Money Laundering

    About The Author

    Jeffrey Francis View more posts by this author

    Jeffrey Francis has spent the last 10 years writing professionally for various websites, as well as creating content for many businesses. A few years back, he began hearing about Bitcoin and the rise of other cryptocurrencies. A proponent of allowing people to take economic power into their own hands, Jeff has enthusiastically supported cryptocurrencies, not to mention the many benefits of blockchain technology. Contact Jeffrey: LinkedIn

  • bitcoin
    BTC$31,020.00
  • ethereum
    ETH$1,149.66
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    binance
    ADVERTISEMENT
    bitmart
    Bitcoin Editorials
    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    5 Possible Reasons For Bitcoin’s Price Surge Over $30,000

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    2020 Year In Review: Bitcoin’s Journey From $3800 To Nearly $30K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    6 Reasons For The Ongoing Bitcoin Bull-Run Beyond $20K

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Is Blockchain The Answer To COVID-19 Led Misinformation and Rumor Mongering?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!