A co-founder of the OneCoin cryptocurrency scam has pleaded guilty to fraud and money laundering, according to the U.S. Department of Justice (DoJ). The news marks a positive development for investors who lost money through OneCoin: they may now be eligible for compensation from criminals convicted in connection with the scam.
OneCoin was a Ponzi scheme that promised its investors astronomical returns and an exclusive membership to something called the “OneCoin Reserve.” The company marketed itself as a cryptocurrency, but it was not actually a cryptocurrency at all.
Ignatov pleaded guilty to fraud and money laundering charges. He faces up to 60 years in prison for his crimes, which include conspiracy, wire fraud, bank fraud and money laundering.
OneCoin Co-founder Behind The Bars
The guilty plea of Konstantin Ignatov, the co-founder of OneCoin, could be a ray of hope for investors who lost money through the cryptocurrency scam.
Ignatov, who co-founded OneCoin with his brother Ruja Ignatova in 2014 and served as its CEO, pleaded guilty to fraud and money laundering charges on February 18th. He was arrested in 2017 while living in Bulgaria and was extradited to the United States where he is facing up to 60 years in jail. Investors were unable to recover their funds because they were stored on the company’s servers rather than held privately by individuals as many cryptocurrencies are.
The scamming company OneCoin has ceased operations, but its founder and co-founder are still facing prison time. Co-founder Konstantin Ignatov plead guilty to wire fraud charges earlier this week, while his father Ruja Ignatova faces up to 60 years in prison if found guilty on similar charges.
If you were scammed by this cryptocurrency Ponzi scheme, you may be able to get your money back from the government or other responsible parties.
The US Department of Justice (DOJ) is working with authorities in Latvia and Germany to determine how much money was lost by investors who believed they were buying into a legitimate digital currency business. The DOJ has already seized over $47 million from OneCoin accounts at banks around the world, including those belonging to Ignatov’s mother and sister-in-law who allegedly helped him hide some of his ill-gotten profits from investigators.