Konstantin Ignatov, brother of OneCoin Founder Ruja Ignatova, has pled guilty to charges of money laundering and fraud and faces up to 90 years in prison following his arrest at Los Angeles International airport in March. This plea deal will prevent Ignatov from receiving any further criminal charges, except for criminal tax evasion charges which he may receive later upon further investigation.
OneCoin is a global Ponzi scheme that promised guaranteed profits to investors and relied on a multi-level marketing scheme to incentivize investors to get their friends and family to invest as well. Ultimately, OneCoin raised around USD 4 billion globally but failed to deliver any actual cryptocurrency to users. It was revealed that OneCoin functioned as a classic Ponzi scheme, where earlier investors were paid with the deposits from later investors until the scheme collapsed and the Founder went into hiding.
Even though OneCoin is one of the biggest crypto-related scams in history, it still is operating out of Bulgaria and has simply changed its name to OneLife. Ignatov has not spoken to the founder since she disappeared, with the only clues being that she requested plane tickets to Austria and Greece before fleeing.
The OneCoin Ponzi scheme is a stark reminder that investors in the crypto space need to do heavy research before investing in a project, and not simply believe marketing materials or positive testimonies from other investors.
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