US FBI Arrested Man Behind Billion Dollar Crypto Pyramid Scheme

By Tabassum
Published March 9, 2019 Updated March 9, 2019
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US FBI Arrested Man Behind Billion Dollar Crypto Pyramid Scheme

By Tabassum
Published March 9, 2019 Updated March 9, 2019

The latest report states FBI or the US Federal Bureau of Investigation has arrested ‘Konstantin Ignatov’ of the billion-dollar pyramid scheme called, ‘OneCoin’ at the Los Angeles International Airport (LAX) on March 06, 2019.

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FBI shared a report on the official website of ‘Department of financial justice’ on March 08, 2019. According to the release, OneCoin is a Multibillion-Dollar Pyramid Scheme which had defrauded many investors – consequent to the release, Konstantin, and his partner have been allegedly selling the fraudulent cryptocurrency across the world. As per the earlier reports, OneCoin’s 22 promoters have already been charged – particularly selling the scam ‘OneCoin’ in India. Along with India, China and other central banks had also warned OneCoin and its team on scamming the investors out of over $4 billion.

When FBI arrested him at the Airport – it has been revealed that Ignatov has been in the US since Feb 27 (researched gathered from his seized devices).

Founded in 2014, OneCoin is reportedly a scam product by the founder Konstantin Ignatov and his sister Ruja Ignatova (worked as a lead for this product). The OneCoin Ltd, is a network marketing product where existing users get paid the commission on attracting new users to its platform. After a year or two – regulators began questioning the legitimacy of the product, particularly, since 2016 – however, the promoters and founders enjoyed millions of dollars by attracting over 3 million members across the globe, particularly throughout Europe and Asia.

Concerning the mater, William Sweeney, Jr. who is the Assistant Director-in-Charge at FBI explained that;

“As we allege, OneCoin was a cryptocurrency existing only in the minds of its creators and their co-conspirators.

Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators.”

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Tabassum
562 Articles
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com

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