Crypto Ponzi Scheme CEO Pleads Not Guilty

Crypto Ponzi Scheme CEO Pleads Not Guilty

The CEO of OneCoin, a cryptocurrency that has come under scrutiny for being a Ponzi scheme, has pleaded not guilty to wire fraud.

Konstantin Ignatov who was charged with a number of crimes, including securities fraud, money laundering and wire fraud. The latter of which crimes he pleaded not guilty to at a trial earlier this week. Ignatov was arrested earlier this year for the crimes which were committed during his tenor at the cryptocurrency, OneCoin.

The exchange swindled users by persuading them to invest in the cryptocurrency, guaranteeing them the profits. However, when the tokens never materialised alarm bells started to ring. Ignatov and his sister are believed to have bamboozled investors out of somewhere in the range of $3.8 billion. The cryptocurrency scam, which dates back to as far as 2014, took advantage of the hype surrounding bitcoin.

As explained in the inditement brought against the pair by the Department of Justice, “These defendants created a multi-billion-dollar cryptocurrency company based completely on lies and deceit. They promised big returns and minimal risk. But, as alleged, this business was a pyramid scheme based on smoke and mirrors.” It went to describe the operation by the Bulgarians, as “an old scam with a virtual twist.”

This is the latest in a long line of different cryptocurrency scams and comes just a few weeks after advice was given by the FCA and Action Fraud for investors to take care when it comes to where they invest.

The case against Ignatov continues.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

ChangeNOW,Cryptocurrency,Investment

ChangeNOW Launches The NOW Tracker App

The young, but fast-growing online cryptocurrency exchange, ChangeNOW, has just announced the release of its latest product. The NOW Tracker is a free asset management app that lets users keep track of their coins and tokens across different wallets. Available on Google Play and the App Store, NOW Tracker is flexible and functional. This solution […]

9 September, 2021
eToro,Investment,Trading

eToro Becomes An Official Partner Of RB Leipzig

The world’s leading social investment network, eToro, has recently announced a new and exciting partnership. According to an announcement on eToro’s Twitter page, the company has become the latest partner of the German football team, RB Leipzig. A two-year partnership agreement has been signed between the parties. Running until 2023, this agreement can be extended […]

24 August, 2021
Binance,Bitcoin,token

PSG’s Messi To Receive Part Of His Salary In Cryptocurrency

The Argentinian footballer, Lionel Messi, has made headline news several times in the past few weeks. Following his surprise departure from FC Barcelona, the player confirmed that he will be joining Paris Saint-Germain FC. The move was significantly newsworthy but got even more interest when it was announced that part of the footballer’s salary will […]

23 August, 2021
Blockchain,Casino,Ethereum

KingTiger Casino Announces Shut Down

KingTiger Casino has announced that it has ceased all operations until further notice. According to its website, the casino has had to “temporarily close” due to Ethereum network congestion. It is not yet clear if and when this online Bitcoin casino will reopen. Registered players can still access their wallet and withdraw their funds. A […]

12 August, 2021
Binance,Casino,Cryptocurrency

CryptoCasino Announces Temporary Close

CryptoCasino has stopped operating until further notice. According to a landing page on their website, the casino is undergoing an update. There is no information about when the casino will reopen or the reason why an update required the website to shut down temporarily. Players who hold a crypto wallet account with CryptoCasino need not […]

11 August, 2021
Binance,Bitcoin,SEPA

Binance Suspends SEPA Inward Payments Until Further Notice

Binance Suspends SEPA Inward Payments Until Further Notice Binance has just announced that it has temporarily stopped all incoming SEPA payments. As a result, users will no longer be able to deposit euros using the primary European payments network. The world’s largest cryptocurrency exchange did not provide any specific information regarding the reason behind this […]

12 July, 2021
Bitcoin,Cryptocurrency,Investment

Why are Crypto Holders Worried of Declaring Their Ownership?

Cryptocurrencies have been popularly regarded as the future of finance globally. Investing in virtual coins has become a lot easier than it was a few years ago with the evolving crypto industry. Over the last few years, Bitcoin has caused a lot of buzz in the market. It has established itself as the de facto […]

8 July, 2021
Bitcoin,CoinMarketCap,Trading

Bitcoin On The Rebound Following Elon Musk’s Latest Announcement

The price of the world’s largest cryptocurrency is rising again following the latest comments from Elon Musk. Bitcoin’s price has climbed and stayed above $40,000 on Monday 14th June, following an announcement by Musk that Tesla will, once again, start accepting BTC payments. The latest comments have proven once more what a powerful influence the […]

16 June, 2021