Konstantin Ignatov, the brother of fugitive crypto scam mastermind Ruja Ignatova, was released from prison today after serving 34 months for his role in the infamous $4.4 billion OneCoin Ponzi scheme.
Ignatov, once considered the “defacto leader” of OneCoin, was granted “time served” by Judge Edgardo Ramos of the District Court. This means the court determined his pre-trial detention served as sufficient punishment.
During the hearing, an emotional Ignatov reportedly took full responsibility for his actions. He expressed remorse and stated that he has “learned lessons” from his experience.
However, Ignatov will remain under court supervision for the next two years and forfeit $118,000 earned during his time at OneCoin. He was initially arrested in 2019 and later pleaded guilty to money laundering and fraud charges.
Ignatov’s reduced sentence stems from his cooperation with prosecutors. He testified against former OneCoin lawyer Mark Scott, who was convicted of laundering $400 million from the scheme and sentenced to 10 years imprisonment in January 2024.
Judge Ramos acknowledged the vast number of victims involved in the OneCoin fraud while commending Ignatov for his cooperation. Prosecutors allege Ignatov took the reins of OneCoin after his sister’s disappearance in 2017. Ruja Ignatova, currently on the FBI’s “Ten Most Wanted” list, remains at large and faces charges of wire fraud, securities fraud, and money laundering.
Another key player in the OneCoin scheme, Karl Sebastian Greenwood, was recently sentenced to 20 years in prison for fraud and money laundering.
OneCoin, a Bulgarian-based cryptocurrency scam, operated from 2014 to 2018 and fraudulently raised $4.4 billion. The scheme promised investors unrealistic profits and falsely marketed itself as a competitor to Bitcoin, attracting numerous victims.
Ignatov’s release and related developments shed further light on the ongoing legal proceedings surrounding the OneCoin Ponzi scheme. While Ignatov received leniency for his cooperation, the case serves as a stark reminder of the consequences associated with such fraudulent activities.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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