OneCoin’s president Konstantin Ignatov, as per recent press report on Friday, Mar. 8th 2019, was arrested at Los Angeles International Airport as a result of an ongoing investigation for alleged fraud. Ignatov is facing charges of money laundering, electronic fraud, and securities fraud, along with Ruja Ignatova, who still remains at large.
According to the US Attorney for the Southern District of New York, Geoffrey Berman, and New York County Attorney Cyrus R. Vance Jr., both Ignatov and Ignatova defrauded “billions” of dollars from their investors through a pyramid crypto-Ponzi scheme.
The defendants Ignatov and Ignatova, set up a multimillion-dollar cryptocurrency company based on false promises, lies, and deceptions. According to the office of the legal representative for the Southern District of New York, the defendants came up with a Ponzi scheme promising surplus returns at minimal risks, but as it all pans out, the whole company is a fraud, and all their promises of big returns are just smoke and mirrors.
OneCoin, for its part, claims that it has an organic growth as well as an increased asset value of its supposed assets, which are mined by company-operated servers.
The US prosecutors, along with federal agencies like the FBI and the IRS, claim, that the firm recruited others to aid in its fraudulent activities. OneCoin started its operations in 2014 with Ignatova as its lead, with self-proclamatory claims as the cryptocurrency that would oust Bitcoin.