Crypto Scams

OneCoin’s co-founder faces 90 years of jail time


Currently, OneCoin is said to be a complete scam, and at the same time, it is a disgrace to other cryptocurrencies. Konstantin Ignatov, the co-founder of OneCoin, is pleaded guilty after participating in the fraud, which has a worth of 4 billion USD. As per the report, which came into being on November 14, suggests that back on October 4, Ignatov did sign the plea. In addition to this, he is also facing jail time, which is around 90 years.

By the looks of it, the news did become public on November 12 after the reports by BBC began to surface. According to sources, the police officers did arrest Ignatov back in March this year. Later Ignatov was pleaded guilty concerning several charges such as fraud and money laundering. However, the police officials are yet to put Ignatov behind bars. The verdict also suggests that Ignatov will not be pleaded guilty any further for the active involvement of OneCoin.

OneCoin was launched by Ruja Ignatova. After its inception, the value of the cryptocurrency grew from 29 euro cents to 29.95 euros in a couple of years. The whole cryptocurrency took $4 billion, but the people began to notice that the entire operation was nothing but a notorious Ponzi scheme.

Ignatov spoke against the co-founder of OneCoin after arrest

Ruja Ignatov did leave the company in October 2017, and then she disappeared. Later, Konstantin, Ruja’s brother, took charge of the company until he was arrested this year in March 2019. According to the officials, Konstantin was first charged with conspiracy for committing wire fraud. Additionally, Ruja has been accused of absentia, security fraud, wire fraud, and money laundering.

Given that Konstantine is facing around 90 years of prison time, but the lengthy sentence might change radically if he co-operates with the authorities. The documents which have been submitted to the court might unveil the activities of people who may use violent means against him or his family. Moreover, this is the reason why he needs protection. According to the plea agreement, Konstantin might get a whole new identity and then enter the witness protection program.

Also Read: Grin Received 50 BTC via Donation

At the time of writing, Ignatov is testifying for the trail of a lawyer named Mark Scott, who is a resident of the US. Scott is accused of laundering $400 million through OneCoin. By the looks of it, Scott pulled off the money laundering activity with the aid of a notable Irish bank.

As far as Ruja Ignatov’s last recorded whereabouts are concerned, Konstantin said that Ruja told him someone close to her might bring harm to her by giving her up to the Federal Bureau of Investigation. Later, Ruja also told him that she did grow tiresome and is currently has a significant passport. Before disappearance, the last request of her sister was three plane tickets to visit Vienna, Austria, and later to Athens. Since the disappearance, Konstantin hasn’t heard about Ruja.

By the looks of it, this is a win for law enforcement officers in the US. Many other countries, such as Singapore and China, are investigating and arresting people associated with OneCoin. OneCoin is still considered as a cryptocurrency; however, investors have lost their faith in OneCoin.

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