The Brother of the “Cryptoqueen” Fugitive Released from US Prison for Involvement in $4 Billion OneCoin Scam
Konstantin Ignatov, the brother of Ruja Ignatova, also known as the “Cryptoqueen,” has been released from a US prison for his role in the $4 billion OneCoin crypto fraud. Ignatov had already served a sentence of 34 months behind bars.
Ignatov Becomes Leader of the Fraud
After Ruja Ignatova disappeared in 2017, Konstantin Ignatov became the de facto leader of the OneCoin fraud. Authorities stated that he played a significant role in perpetuating the scam.
Cooperation with Prosecutors Leads to Reduced Sentence
Due to his cooperation with prosecutors, Ignatov pleaded guilty and received a sentence recommendation of time served. As part of his plea deal, he was also ordered to forfeit $118,000.
Testimony Against Lawyer Mark Scott
During his cooperation with prosecutors, Ignatov provided testimony against Mark Scott, a lawyer who helped launder hundreds of millions of dollars for the OneCoin scam. Scott was later found guilty and sentenced to 10 years in prison.
Arrest and Charges
Konstantin Ignatov was initially arrested at Los Angeles International Airport in 2019 and charged with conspiracy to commit wire fraud.
Previous Sentencing and Fugitive Status
In September, Karl Sebastian Greenwood, another key figure in the OneCoin scam, was sentenced to 20 years in prison and ordered to forfeit over $300 million. Ruja Ignatova, whose whereabouts are unknown, was placed on the FBI’s “Ten Most Wanted Fugitives” list in 2022. There are also reports suggesting she may have been murdered in 2018 on the order of a drug lord.
The OneCoin Scam
OneCoin, founded by Ruja and Karl Sebastian Greenwood in Bulgaria in 2014, operated as a fraudulent scheme that promoted a digital asset under the same name. It operated similarly to a pyramid scheme.
Hot Take: The Fallout from the OneCoin Scam Continues
The release of Konstantin Ignatov, the brother of the “Cryptoqueen,” shines a light on the ongoing repercussions of the massive OneCoin scam. While Ignatov has served his time, the masterminds behind the scheme, including Ruja Ignatova, remain at large or face uncertain fates.
Here are some key takeaways:
- Konstantin Ignatov’s release:
- Ignatov, who took over leadership of the OneCoin fraud after his sister’s disappearance, has been released from prison after serving 34 months.
- His cooperation with prosecutors led to a reduced sentence recommendation of time served.
- Continued fallout:
- The OneCoin scam has had far-reaching consequences and continues to be investigated and prosecuted.
- Mark Scott, the lawyer involved in laundering money for the scam, was found guilty and sentenced to 10 years in prison.
- Ruja Ignatova remains on the FBI’s “Ten Most Wanted Fugitives” list, with speculation surrounding her possible murder.
The release of Konstantin Ignatov serves as a reminder of the lasting impact of cryptocurrency scams and the need for continued vigilance in the crypto space.
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