The US Federal Bureau of Investigation (FBI) arrested OneCoin ringleader Konstantin Ignatov on March 6, 2019, at Los Angeles International Airport (LAX) for securities fraud, wire fraud, and money laundering.
The two entrepreneurs were scammers who defrauded investors in billions of dollars using the famous OneCoin, which was a popular scam that lasted for a long time.
According to the reports of FBI on March 08, 2019, OneCoin is a Multibillion-Dollar Pyramid Scheme swindling many investors. The reports claimed
As per the previous reports, 22 promoters are accused
The coin was found in 2014 at Bulgaria. The company offered users a commission if they could convince others to buy OneCoin cryptocurrency. Following the similar pattern of a multi-level marketing scheme. It seems to have more than 3 million members across the world, despite having no functional blockchain or public ledger.
Concerning the mater, William Sweeney, Jr. 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. Investors had no clue of tracing their money, and it can’t used to purchase anything. In fact, the only person who enjoyed the benefits from its existence were its founders and co-conspirators.”
In addition, the most interesting facet of the arrest is that it puts a hindrance on the backup plans of OneCoin. However, those familiar with the case might be aware that Ignatov’s sister, Ruja Ignatova, is the main promoter and owner of the scam. Customs agents arrested Ignatov and seized his phone and laptop in late February. They found he had full power of attorney over his sister’s assets already.
Well, considering all things, it’s clear that anyone still investing
What is your view on this unfolding