Sentencing of OneCoin leader gets postponed again
The sentencing of Konstantin Ignatov, the leader of fraudulent cryptocurrency scheme OneCoin, has been delayed again. This is indicated by documents filed with the New York Southern District Court on May 12, 2022.
The sentencing of Ignatov has been postponed until August 10, 2022. The reason for the delay, as with the previous delays, is that the defendant’s cooperation is not yet complete. This way, the sentencing control date has been adjourned for approximately 90 days. The defense has consented to this schedule change.
Let’s recall that Konstantin Ignatov was arrested March 6, 2019, at the Los Angeles International Airport. He was charged with wire fraud conspiracy stemming from his role as the leader of an international pyramid scheme that involved the marketing of a fraudulent cryptocurrency called “OneCoin.” An Indictment also charged Ignatov’s sister, Ruja Ignatova – a founder and original leader of OneCoin – with wire fraud, securities fraud, and money laundering offenses.
As a result of misrepresentations that Ignatov, Ignatova and others made about OneCoin, victims invested billions of dollars worldwide in the fraudulent cryptocurrency.
OneCoin Ltd. operated as a multi-level marketing network through which members receive commissions for recruiting others to purchase cryptocurrency packages. This multi-level marketing structure has fueled the rapid growth of the OneCoin member network. Indeed, OneCoin Ltd. has claimed to have more than 3 million members worldwide, including victims living and/or working within the Southern District of New York.
Records obtained in the course of the investigation show that, between the fourth quarter of 2014 and the third quarter of 2016 alone, OneCoin Ltd. generated €3.353 billion in sales revenue and earned “profits” of €2.232 billion.