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OneCoin Crypto Scam Sentencing Gets Postpone

OneCoin crypto scam has received the relief for three months at the request from the U.S. government. 

KONSTANTIN IGNATOV, the co-founder of the major cryptocurrency exchange scam, has secured the sentencing relief on April 7 from the New York Southern District Court. 

Reportedly, the last sentencing date has changed from April 8 to July 8, 2020. 

The New York Southern District Court has sanctioned the proposal to postpone Ignatov punishment- the brother and abettor of OneCoin master mind RUJA IGNATOVA- the current fugitive figure. 

The motion to adjourn the case for further three months ensued form the U.S. government claims— “IGNATOV’s cooperation hasn’t yet completed.”  

Purportedly, in its April 6 letter, the U.S. government, shows that the adjournment request resulted by the fact that the government is seeking to unseal a series of vital documents and the defence has also given the consent to its application.

Background- OneCoin Ponzi Scheme 

The multi-billion-dollar international pyramid scheme OneCoin founded in 2014 by founders Konstantin Ignatov and his sister RUJA IGNATOVA, a.k.a the “Cryptoqueen”, in the capital city of Bulgaria, Sofia. 

The Manhattan U.S. attorney had charged OneCoin leaders of building a fraud cryptocurrency venture which was involved in the sale of fraudulent cryptocurrency packages, devoid of any intrinsic value and blockchain. 

Purportedly, OneCoin Ltd. That claimed to have over 3 million members worldwide, has gathered 4 billion euro ($4.4 billion) by duping the investors in a multi-level marketing scheme. 

The concept– OneCoin has operated a multi-level marketing network and lured customers into becoming its members. The structure used to provide the commissions to the members who recruit others to purchase cryptocurrency packages. 

The whole arrangement of misrepresentation by siblings- IGNATOV, IGNATOVA including other OneCoin representatives, made people wire funds to OneCoin- controlled bank accounts to purchase OneCoin fraud cryptocurrency packages.

In March 8 letter, the Southern District of New York Court claimed that with OneCoin “Investors got victimized while the defendants got rich” by establishing a company based on lies and deceit. 

“OneCoin promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich. Our Office has a history of successfully targeting, arresting, and convicting financial fraudsters, and this case is no different.”

As per the investigation led by U.S. Attorneys » Southern District of New York-

OneCoin Ltd. generated €3.353 billion in sales revenue and earned “profits” of €2.232 billion, between the fourth quarter of 2014 and the third quarter of 2016, alone.

The industry’s most notorious exit scam leader Konstantin Ignatov got arrested on March 6, 2019, at the Los Angeles International Airport, on a “wire fraud conspiracy charge holding back from his role as the leader of OncCoin.” 

IGNATOV has found guilty in the OneCoin scam and allegedly would serve 90 years in jail once the judgement concludes. At present, IGNATOV is serving as a cooperating witness in the trial against Mark Scott. 

Mark Scott is the lawyer who purportedly helped the defendants to launder nearly $400 million via the exit scam. Scott has received a hefty amount of $50 million from the two founders in siphoning off the money. 

On November 21, 2019, Law360.com mentioned in detail about Scott’s help to the siblings in conducting the fraud and found him guilty.

“An Indictment was charging IGNATOV’s sister, RUJA IGNATOVA – a founder and original leader of OneCoin – with wire fraud, securities fraud, and money laundering offences unsealed on March 7, 2019.” 

IGNATOVA served as OneCoin’s top leader until she disappeared from public view, in October 2017. Starting in late 2017, IGNATOV— IGNATOVA’s younger brother, assumed high-level positions at OneCoin, rising to the top leadership position by mid-2018.

IRS Special Agent in Charge John R. Tafur said: “This is an old scam with a virtual twist. As alleged in court documents, the cryptocurrency OneCoin was established for the sole purpose of defrauding investors.

Reportedly, the fraudulent company- OneCoin was fully operational until November 2019, even with ongoing proceedings following the 4 billion euro ($4.4 billion) Ponzi scheme allegations.

Image by Okan Caliskan from Pixabay