Sentencing of OneCoin leader Konstantin Ignatov delayed until May 2022
The sentencing of Konstantin Ignatov, a key figure in the proceedings against notorious crypto scheme OneCoin, has been postponed again. This becomes clear from recent filings with the New York Southern District Court.
The sentencing control date for Mr Ignatov previously set for November 12, 2021 has been adjourned to May 12, 2022.
There was no explanation as to why the sentencing has been rescheduled. However, the previous time the schedule was changed, the Department of Justice (DOJ) explained that Ignatov’s co-operation with the authorities was not yet complete.
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.