FBI Nabs Onecoin Founder- Discovering Massive Crypto Scams

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.

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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 that, Konstantin, and his partner have been apparently selling the fraudulent cryptocurrency worldwide.

As per the previous reports, 22 promoters are accused for selling the scam ‘OneCoin’ in India. Not only in India but also China and other central banks warned OneCoin team on scamming the investors with nearly $4 billion.

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 into the cryptocurrency has not done any research. In particular, the scheme usually targets people who are unaware about the coin or who are new in crypto space.  Any casual search about OneCoin will result in warnings from central banks and number of reports on the illegitimacy of OneCoin.

What is your view on this unfolding Onecoin news? Let us know in the comments section if you have had any experience with the coin.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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