А U.S. District Lawyer has charged the creators of a crypto pyramid scheme that included the marketing of a deceptive digital currency “OneCoin.”.
A United States District Attorney has charged the founders of an international cryptocurrency pyramid plan that included the marketing of a presumably deceitful digital currency called “OneCoin.” The announcement was released by the U.S. Attorney Workplace of the Southern District of New York on March 8.
The founders and leaders of OneCoin, Konstantin Ignatov and his sis Ruja Ignatova, were apparently apprehended on March 6, 2019, in Los Angeles. The siblings were accused of “wire scams, securities fraud, and money laundering offenses,” where they apparently tempted investors to contribute “billions of dollars in the deceptive cryptocurrency.”.
OneCoin was established in 2014 and is based in the capital city of Bulgaria, Sofia. The project runs as a marketing network through which members get commissions for attracting other prospective financiers to buy cryptocurrency plans. OneCoin purportedly has over 3 million members worldwide.
When Ignatov was asked when OneCoin members could “cash out” their coins at a conference with financiers in Las Vegas, he said “if you are here to cash out, leave this space now, since you do not comprehend what this project has to do with.” Discussing the charges, Manhattan U.S. Attorney Geoffrey S. Berman said:
“As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company based completely on lies and deceit. They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones. Investors were victimized while the defendants got rich. Our Office has a history of successfully targeting, arresting, and convicting financial fraudsters, and this case is no different.”
The probe reportedly discovered that between the fourth quarter of 2014 and the third quarter of 2016 OneCoin brought in 3.353 billion euros ($ 3.769 billion) in sales revenue and received “profits” of 2.232 billion euros ($ 2.509 billion).
New York County Da Cyrus R. Vance, Jr. declared that “these defendants [the Ignatovs] pulled off an old-school pyramid scheme on a new-school platform, compromising the integrity of New York’s financial system and scamming investors out of billions.”
Last month, the U.S. Department of Justice charged a New York-based operator, Randall Crater, of a purported cryptocurrency payment services firm My Big Coin Pay Inc. (My Big Coin) with wire fraud and unlawful monetary transactions. The indictment affirms that Crater conducted four counts of wire fraud and three counts of unlawful monetary transactions, in addition to misappropriated more than $6 million in investor funds for personal use.
Have you or someone you know been caught up in the OneCoin drama? Let us know in the comments!