The alleged ringleaders of OneCoin, the multi-billion dollar cryptocurrency-fuelled pyramid scheme, have finally been busted

On Friday, US authorities apprehended brother-and-sister duo Konstantin Ignatov and Ruja Ignatova at Los Angeles International Airport over their role in the international blockchain-based scam, reports Bloomberg.

Ignatova, the founder of OneCoin, was charged with securities fraud, wire fraud, and money laundering, but as yet is not under arrest. Ignatov is alleged to have taken over OneCoin, and was arrested on a charge of conspiracy to commit wire fraud.

A third suspect, Mark S. Scott (a former partner of major US law firm Locke Lord), had already been arrested, charged with laundering more than $400 million for OneCoin, primarily through bank accounts in the Republic of Ireland and the Cayman Islands.

FBI assistant director-in-charge William Sweeney Jr. explained the allegations in a statement:

As we allege, OneCoin was a cryptocurrency existing only in the minds of its creators and their co-conspirators. 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.

Creating billions of dollars with nothing but blockchain bullshit is immensely impressive (albeit not unprecedented), so let’s take a look at how OneCoin got to be this enormously fraudulent

 

Reporter Gina Lee (news@dailycoinews.com)의 기사 더 보기

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