On March 8, the US Department of Justice and the Southern District of New York (SDNY) Prosecutor announced that the officials had charged two of the top leaders of the notorious Onecoin project. The prosecutors accused the co-founders of Onecoin, Konstantin Ignatov and Ruja Ignatova, with a series of charges of fraudulent investors. Konstantin Ignatov was also arrested in Los Angeles and appeared in California before a judge.
Also read: "Bitcoin Killer" Onecoin is ashes, but the investigations continue today
US prosecutors are calling for a moneychanger to money laundering and securities fraud
This week US prosecutors have charged the leaders of the notorious Onecoin project: Konstantin Ignatov and Ruja Ignatova. The duo started the project in 2014 and hired a group of others to promote the Ponzi program. Recently, news.Bitcoin.com has released an Update Update on the Onecoin Project and explains how law enforcement agencies from different countries have investigated this case. In addition, Ruja Ignatova had disappeared and has not been seen for over a year after buying a villa and a yacht. Now, the US Department of Justice (DoJ) has informed the public that Konstantin Ignatov was arrested in L.A. Both leaders are charged with fraud, money laundering and securities fraud.
"As stated in the indictment, on a New School platform, these defendants implemented an old-school pyramid scheme that threatened the integrity of the New York financial system and deprived investors of billions." Cyrus R. Vance, Jr in detail. "Our office is calling on all crypto investors to question investment opportunities, recognize the prevalence of fraud in this under-regulated space, and act with caution."
"Onecoin was missing a real blockchain"
The press release published by DoJ and SDNY is pretty damaging. The announcement said the duo claimed that private computers or "servers" had mined the alleged cryptocurrency named Onecoin. The investigators, however, claim that the project was nothing but a "fraudulent pyramid scheme". "Onecoin Ltd. is working as a multi-level marketing network where members receive commissions to recruit other crypto currency packages – Onecoin is still active today," the announcement said.
The seething criticism of the alleged Blockchain was continued:
In addition, Onecoin Ltd. has claims to have a private "blockchain" or digital ledger that identifies Onecoins and records historical transactions. The investigation has shown that Onecoin lacks a real blockchain, ie a public and verifiable blockchain.
The publication also mentioned that Ruja Ignatova and her co-founder told certain members of the Oncoin inner circle in March 2015 that the packages were "false coins". According to a text transcript between an unnamed co-founder, the person wrote, "These people are idiots." based on investors. Law enforcement officials went on to explain that Ignatova has disappeared from the company's public leadership, but in 2012, Konstantin still did onecoin business in the US. The dismissal also mentioned the recent arrest of Florida-based attorney Mark Scott, who allegedly helped the duo cleanse and transfer a large amount of Onecoin's illegal funds. All three are sentenced to a maximum of 20 years imprisonment, but Ignatova remains at liberty.
What do you think of Onecoin's leaders in the US being charged with money laundering and fraud? Tell us in the comments what you think about this topic.
Picture credits: Pixabay and Youtube.
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