DOJ Detains OneCoin Crypto MLM Scheme Leader Konstantin Ignatov in New York
OneCoin has been functioning as an MLM marketing scheme for several years and has managed to gain over three million members during its time.
Presently, it appears to be in operation, claiming to be a “private blockchain,” though they have been issuing fake digital assets since 2015. Luckily, the courts in New York are finally aggressively going after this massive pyramid scheme with new charges, which included money laundering.
Now, as the charges are handled by the courts in New York, Ignatov has been officially detained, after being arrested in California last week, according to an “out of district fugitive warrant” last week.
The Department of Justice (DOJ) stated that there was “no condition or combination of conditions” that would ensure that Ignatov would show up, and or that the safety of the community would be maintained if he was not detained.
Furthermore, the courts believe that he is a significant flight risk. Ultimately, a Magistrate Judge agreed, and chose to put out the order that Ignatov be detained.
When Ignatov was detained, he was attempting to leave the country, and further research shows that he has no relatives or loved ones within the country. With all of the evidence against the acting head of OneCoin, along with his properties in Bulgaria to flee to, the decision to keep him in custody was in the best interest of the OneCoin charges.
The full extent of the financial sureties and property of Ignatov are unknown, and the financial affidavit has already been filed under seal.
Now, the DOJ is prepared to make any moves necessary to reduce the risks that come with Ignatov’s involvement, especially considering his relation to fugitive Ruja Ignatov, his sister. His case is the next to be presented within the Southern District of New York, and he will be charged with conspiracy to commit wire fraud.
It appears as though the detainment will be effective until the case is over, though he could ultimately be incarcerated for the next 20 years if he is found guilty.