OneCoin Founder’s Brother, Konstantin Ignatov, is facing some serious jail time for his involvement in the popular crypto Ponzi scheme as we reported multiple times in our cryptocurrency news.
The entire crypto ecosystem is no stranger to scams and pyramid schemes and with the technology emerging and the dramatically rising prices, there is only more dangerous for people to get into get-rich-quick schemes that only can cause trouble for them and their hard-earned money. One of the biggest crypto scams is surely OneCoin which managed to take in about $4 billion. The Ponzi scheme saga continues right now as OneCoin Founder’s brother has pleaded guilty to money laundering and fraud charges in the United States.
OneCoin was created by Ruja Ignatova in 2014 in Bulgaria and the crypto project saw incredible success, increasing from 29 cents to 29.95 Euros in a period of two years. The entire operation gathered up to $4 billion but the problem was that the entire operation ended up to be a Ponzi scheme. Ruja left the company in 2017 and she disappeared right away. Her brother, Konstantin Ignatov took over the company but ended up being arrested in March 2019 at the LA airport. He was initially charged with conspiracy to commit wire fraud and his sister was charged in absentia with securities fraud.
The court documents revealed that Konstatin Ignatov has pleaded guilty to fraud and money laundering and his plea agreement was signed on October 4. His agreement ensures that Konstantin will not face further criminal charges related to OneCoin but he is still liable for criminal tax violations. Konstantin faces up to 90 years in prison but this sentence can be changed because of his cooperation with the authorities. The court documents show that his testimony could reveal ‘’activities of individuals who might use violence’’ against his family. The plea agreement includes the possibility to give Konstantin a new identity and an entrance to the witness protection program.
As for Ruja, Konstantin revealed that she shared with him that she is afraid that someone close to her will going to betray her to the FBI and said that she was very tired before disappearing. He has not spoken to her since she disappeared.
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