After years of scamming billions of investments in the alleged crypto coin scam, the New York police identified one of its alleged leaders and detained him as the head of the scheme.
Alleged Leader Got Arrested
On Wednesday, Konstantin Ignatov was arrested with the charges of ‘wire fraud conspiracy charge stemming from his role as the leader of an international pyramid scheme that involved the marketing of a fraudulent cryptocurrency called “OneCoin.”’
Ignatov was caught in the act at Los Angeles International Airport after the investigation arose that he was around the area at the time.
Although under prior investigation by Geoffrey S. Berman, the US Attorney for the Southern District of New York, Ignatov remained to be allegedly accused with the crimes since the investigation is still ongoing as of now.
The Real Leader Remains At Large
Furthermore, Ignatov turns out to be just the inheritor of the business scam as his sister named Ruja Ignatova turned out to be the real founder and leader of the One Coin scam.
However, Ignatova remained at large and was also accused with some crimes including wire fraud, securities fraud, and money laundering.
What’s One Coin Scam?
One Coin scam was founded in the year 2014 where it originally based in Sofia, Bulgaria. After a few years, the company generated 3.4 billion euros ($3.8 billion) in revenue from the fourth quarter of 2014 to the third quarter of 2016.
This large amount of investment alerted the police and the investigators as the victims of the crypto-coin piled up accusing the company as a fake investment firm.
“Unlike authentic cryptocurrencies, which maintain records of their investors’ transaction history, OneCoin had no real value. It offered investors no method of tracing their money, and it could not be used to purchase anything. In fact, the only ones who stood to benefit from its existence were its founders and co-conspirators,” stated by FBI Assistant Director-in-Charge William Sweeney, Jr.
A New Twist In Stealing Money
New York County District Attorney Cyrus R. Vance, Jr. warned all investors to become vigilant when it comes to their money investments as schemes continue to increase nowadays describing it as an ‘old-school pyramid scheme on a new-school platform.’
“Our Office urges all crypto investors to scrutinize investment opportunities, recognize the prevalence of fraud in this underregulated space, and proceed with caution,” added by him.
An international crackdown is being held all over the world since the founder of One Coin remains to be roaming outside the law. Countries like China, U.K., Ireland, Italy, U.S., Canada, Ukraine, the Baltics and other more continue their hunt against the scheming leader.