Sentencing of OneCoin leader Konstantin Ignatov gets adjourned
Those anticipating the end of the criminal proceedings against the individuals involved in multi-billion dollar cryptocurrency scam OneCoin will have to wait a bit longer as the sentencing of OneCoin leader Konstantin Ignatov has been postponed again.
On November 10, 2020, the US Government filed a motion to adjourn the sentencing control date (set for November 11, 2020). The US authorities explained that because the defendant’s cooperation is not yet complete, the Government requests that the sentencing control date be adjourned for approximately six months. The defense consented to this application.
Judge Edgardo Ramos of the New York Southern District Court has granted the motion. The sentencing control date is now adjourned to May 14, 2021, at 3:30 p.m.
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.