OneCoin boss arrested for crypto fraud
Konstantin Ignatov, president of crypto company OneCoin, has been arrested at Los Angeles International Airport as a result of an investigation for alleged fraud.
OneCoin was touted as the currency that would end bitcoin
The announcement was made on 8 March in New York, with the charges of money laundering, electronic fraud and securities fraud, alongside Ruja Ignatova, who remains at large.
The United States Attorney for the Southern District of New York, Geoffrey Berman, and New York County Attorney Cyrus R. Vance Jr. allege that Ignatov and Ignatova defrauded “billions” of dollars from their investors through a pyramid scheme.
The defendants allegedly created a multimillion-dollar cryptocurrency company based entirely on lies and deceptions. They promised big returns and minimal risks, but it turned out to be all smoke and mirrors, says the office of the legal representative for the Southern District of New York.
OneCoin, for its part, argues that its growth has been organic, as well as the increase in the value of its supposed asset, and that these are mined by servers operated by the company.
The prosecutors, along with the special agencies of the FBI and the IRS, noted that through the firm, members are responsible for the recruitment of others and also must buy packages of an alleged cryptocurrency.
OneCoin started in 2014 with Ignatova in the lead, touting itself as the cryptocurrency that would end Bitcoin.
We have reported other cases in the fintech industry shrouded with mystery. Recently we covered the notable case of QuadrigaCX, where the CEO allegedly died, and all the currencies stored by the company disappeared.
