OneCoin Ponzi Scam Ringleaders Charged in United States

ponzi scheme

Following his arrest by authorities at LAX airport, Konstantin Ignatov, chief of the OneCoin ponzi rip-off, now faces fees. His sister, Ruja, who based OneCoin, additionally faces a number of fees of fraud and cash laundering — though presently stays at giant. 

OneCoin To Rule Them All

Ruja Ignatova created OneCoin in Bulgaria in 2014 and it generated $3.eight billion in income by Q3 2016, in keeping with prosecutors. The OneCoin ‘tokens’ rose in alleged worth from 50 euro cents to just about €30 — although the ‘digital currency’ had no blockchain, no utility, and no manner of monitoring it.

In traditional Ponzi model, it relied on a relentless circulate of cash from new buyers — which current members acquired commissions for recruiting. The cryptocurrency media shortly referred to as out OneCoin as an MLM pyramid scheme, and authorities adopted go well with in an growing variety of international locations.

However, the venture soldiered on, even going as far as to announce an preliminary public providing (IPO) in early 2017. Before this might occur, Ruja Ignatova disappeared from the general public eye, together with her brother, Konstantin, taking the reins in 2018.

ponzi scheme

Sweet Dreams, My LA Ex

Konstantin Ignatov’s arrest on the Los Angeles International Airport was on fees of conspiring to commit wire fraud. Authorities have additionally indicted Ruja Ignatova in absentia for cash laundering — and wire and securities fraud.

Manhattan US Attorney, Geoffrey Berman, mentioned in a press release:

As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ firm based mostly fully on lies and deceit. They promised huge returns and minimal threat, however, as alleged, this enterprise was a pyramid scheme based mostly on smoke and mirrors greater than zeroes and ones.

New York County District Attorney Cyrus Vance added that: “These defendants executed an old-school pyramid scheme on a new-school platform.”

lax airport

Scamming Until The Very End

Prior to his arrest, Ignatov had traveled to the United States to satisfy OneCoin associates. During a gathering in Los Vegas, one requested when members would be capable to ‘money out’ their OneCoins. His reported response was:

If you’re right here to money out, depart this room now, since you don’t perceive what this venture is about.

That was presumably essentially the most brutally trustworthy recommendation OneCoin buyers ever acquired.

If discovered responsible, Ignatov’s cost carries a most sentence of twenty years in jail. However, if his sister is caught, then her mixed fees might see her spend eighty-five years behind bars.

Images courtesy of Shutterstock.

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