In line with a recent official ‘announcement‘ by U.S. Attorney Office of South District Office of New York, the founders of a global ‘cryptocurrency‘ scheme that involved the promoting of an illicit fraudulent crypto currency “OneCoin.”
The founders and leader of OneCoin, Konstantin Ignatov along with his sister Ruja Ignatova, were reportedly in remission on 4th March, in Los Angeles. The siblings were filed with “wire fraud, securities ‘fraud‘, and laundering offenses,” they were also charged with allegedly luring investors to contribute “billions of dollars in the fraudulent pyramid investment scheme.”
OneCoin was established earlier in 2014 and is headquartered at Bulgaria, Sofia. The project operates as a promoting network via which members receive commissions for attracting alternative potential investors to purchased cryptocurrency packages. OneCoin supposedly has over 3 Mln members worldwide.
When Ignatov was asked, if OneCoin members could “cash out” their coins at a gathering with investors in Las Vegas, he added that “if you’re here to cash out, leave this room now, as you don’t understand what is this project all about.” While commenting on the charges filed, Manhattan U.S. Attorney ‘Geoffrey S. Berman’ stated:
“As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company primarily based utterly on lies and deceit. They promised huge returns with no risks, but, as alleged, this business was a strategic pyramid scheme based on clouds and mirrors over zeroes and ones. Investors were victimized whereas the defendants got wealthy. Our office includes a history of such successfully targeting, arresting, and convicting monetary fraudsters, and this case no different at all from them.”
Additionally, the investigation reportedly also found that between the Q4 of 2014 and Q3 of 2016 OneCoin generated over 3.353 Bln Euros [around $3.769 Bln] in sales revenue and attained “profits” of over 2.232 Bln Euros [around $2.509 Bln].
New York County District Attorney ‘Cyrus R. Vance, Jr.’ added that “these defendants [the Ignatovs] executed an old-school strategy on a new-school platform, assuring the integrity of New York’s monetary system and defrauding investors out of billions.”
Just last month, the U.S. Department of Justice ‘filed‘ a case against York-based operator, Randall Crater, of a purported crypto payment services company My Big Coin Pay Inc.. [My Big Coin] with wire fraud and illicit financial transactions. The indictment states that Crater conducted four counts of wire ‘fraud‘ and 3 counts of unlawful financial transactions, and also misappropriated over $6 Mln in investors funds for its private use.