US Arrested A OneCoin Leader For A “Multibillion-Dollar Pyramid Scheme” Scam

On March 06, authorities from the United States arrested a OneCoin leader named Konstantin Ignatov for what the Department of Justice referred to as a “multibillion-dollar pyramid scheme.” The arrest is allegedly among the most notable cryptocurrency scams in US history.

Konstantin Ignatov was arrested a few days ago.

Five years ago (2014), in Bulgaria, OneCoin was founded by Ruja Ignatova, the abovementioned exec’s sister. Nearly two years later, their company’s profits reached a significant number: over $2.5 billion. The data was collected from a press release of DOJ.

However, a lot of OneCoin investors must get a shock when knowing that the cryptocurrency was a 100% scam, no more. The company didn’t have any blockchain, and all values its founders said belonged to the cryptocurrency, not related to the market. This was completely contrary to what they mentioned to their investors.

When OneCoin was confirmed as a scam, the US FBI received a series of charges against the crypto exec. In addition, the OneCoin’s victims as investors were also warned about the illicit activities the company has done for recent years. The press release of DOJ revealed that Ruja Ignatova hasn’t appeared in public locations from October 2017 to now. As per her brother, Konstantin Ignatov kept managing their company until the middle of 2018.

Charged with a fraud conspiracy, Ignatov was arrested at the Los Angeles International Airport (LAX). The OneCoin founder is now free; however, she is also indicted for many crimes including securities fraud, money laundering, and wire fraud. It’s no exaggeration to say that the glorious days of OneCoin are just the past.