1 min read

Accused OneCoin Scam Orchestrator Arrested in Los Angeles

Luana PASCU

March 11, 2019

Ad One product to protect all your devices, without slowing them down.
Free 90-day trial
Accused OneCoin Scam Orchestrator Arrested in Los Angeles

OneCoin founder Konstantin Ignatov was arrested at the Los Angeles airport on March 6 on allegations of wire fraud and cryptocurrency scams, the Manhattan US attorney”s office announced. An US investigation concluded that OneCoin is in fact a “multibillion-dollar pyramid scheme involving the sale of a fraudulent cryptocurrency.”

Established in 2014 in Bulgaria, the OneCoin operation allegedly involved selling cryptocurrency that didn”t exist, and tampering with prices. It was run by Ignatov, his sister Ruja Ignatova who”s currently in hiding, and a number of others. A third suspect in the OneCoin operation is Mark Scott, charged with laundering half a billion dollars.

The three allegedly took advantage of the cryptocurrency craze to make money off gullible investors by selling coins with zero value. Investors couldn”t track their money or use it to make purchases, said FBI Assistant Director-in-Charge William Sweeney, Jr. 

“This is an old scam with a virtual twist,” said IRS Special Agent in Charge John R. Tafur. “As alleged in court documents, the cryptocurrency OneCoin was established for the sole purpose of defrauding investors. Ignatov and Ignatova allegedly convinced victims to invest in OneCoin based on complete lies about the virtual currency.”

Despite charges and Ignatov”s arrest, OneCoin is still active and making money off investment funds wired from people around the world to buy OneCoin packages. According to US law enforcement, bank records show that “OneCoin Ltd. generated €3.353 billion in sales revenue and earned “profits” of €2.232 billion” between 2014 and 2016.

They each face at least 20 years in prison for their actions.

tags


Author



Right now

Top posts

Identifying and Dealing with Online Bullying Is Not Impossible - School Presentation Inside

Identifying and Dealing with Online Bullying Is Not Impossible - School Presentation Inside

June 28, 2022

2 min read
Let’s Celebrate World Social Media Day by Improving Your Privacy and Security Online

Let’s Celebrate World Social Media Day by Improving Your Privacy and Security Online

June 28, 2022

3 min read
Bitdefender Reveals the Top Cyber Threats Faced by Consumers in 2021

Bitdefender Reveals the Top Cyber Threats Faced by Consumers in 2021

June 22, 2022

1 min read
Scam alert: Cybercrooks use shady investment domain to scam keen investors out of money and data

Scam alert: Cybercrooks use shady investment domain to scam keen investors out of money and data

May 24, 2022

3 min read
John Oliver Shows the Dark Side of Data Brokerage on Last Week Tonight

John Oliver Shows the Dark Side of Data Brokerage on Last Week Tonight

April 15, 2022

3 min read
Bitdefender Labs Warns of Phishing Scams Targeting MetaMask Users

Bitdefender Labs Warns of Phishing Scams Targeting MetaMask Users

April 14, 2022

3 min read

FOLLOW US ON

SOCIAL MEDIA


You might also like

Popular Devices Are Usually the Safest, Bitdefender Consumer Threat Landscape Report Finds Popular Devices Are Usually the Safest, Bitdefender Consumer Threat Landscape Report Finds
Silviu STAHIE

June 29, 2022

2 min read
CafePress Fined $500,000 for Not Disclosing Data Breach that Compromised 23 Million Accounts CafePress Fined $500,000 for Not Disclosing Data Breach that Compromised 23 Million Accounts
Silviu STAHIE

June 28, 2022

1 min read
Carnival Cruises bruised by $6.25 million fine after series of cyberattacks Carnival Cruises bruised by $6.25 million fine after series of cyberattacks
Graham CLULEY

June 28, 2022

2 min read