A United States District Attorney has charged the founders of OneCoin cryptocurrency pyramid scheme. The cryptocurrency founders Konstantin Ignatov and his sister Ruja Ignatova were arrested in Los Angeles, CA, on March 6, 2019.
Manhattan U.S. Attorney Geoffrey S. Berman commented on the charges:
“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 investigation revealed that OneCoin generated 3.353 billion euros ($3.769 billion) in sales revenue and earned “profits” of 2.232 billion euros ($2.509 billion) between the fourth quarter of 2014 and the third quarter of 2016.
“These defendants the Ignatovs executed an old-school pyramid scheme on a new-school platform, compromising the integrity of New York’s financial system and defrauding investors out of billions,” New York County District Attorney Cyrus R. Vance, commented.