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$3.7 billion cryptocurrency fraud conspiracy


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US arrests alleged leader of $3.7 billion cryptocurrency fraud conspiracy

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The law enforcement agencies in the United States have arrested one top-level leader of a cryptocurrency pyramid scheme.

The project named OneCoin has been alleged by prosecutors to be an elaborate scam rather than a legitimate and functioning digital asset. Brother-sister duo Konstantin Ignatov (younger brother) and Ruja Ignatova (elder sister) have been charged with fraud allegations.

Konstantin Ignatov has been arrested on a charge for wire fraud conspiracy while the elder sister is indicted for wire and securities fraud, and money laundering. This information was unveiled in a document published on the official website of the US Department of Justice. The elder sister, Ruja Ignatova, is currently at large.

The company OneCoin was started by the siblings in 2014 and had its operations running even during the time the warrants for both the leaders were issued. The marketing strategy of the crypto firm was to pay a small commission to its users if they persuaded others in their circle to buy OneCoin.

This marketing plan is clearly a multi-level strategy and people should have realized that they are becoming the part of a pyramid. However, the company paid out the promised money and no one got hurt early. As a result, the company was able to sign up over 3 million memberships worldwide, according to their own claim.

The only problem with this whole scenario is that the crypto company simply didn’t have a functional blockchain or any public ledger for the cryptocurrency they were selling. Geoffrey Berman, an attorney in Manhattan, said in an official press release that the culprits created a multibillion-dollar scam through lies and deceit. Within the starting of the company in 2014 and 2016, OneCoin was able to generate $3.7 billion (£2.9 billion) in revenues.

Popular crypto news outlet CoinDesk noted that the company may have committed fraud in other countries including Bulgaria, Germany, India, UK, China, and Finland. Konstantin Ignatov faced 20 years in prison while Ruka Ignatova could get up to 85 years in prison if she is found guilty on all five counts alleged against her.

This event should be a wake-up call for every crypto trader in the community. It is important to stay safe and buy Bitcoin, Ripple, or other cryptocurrencies that are globally known to be legitimate and authentic.

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