OneCoin co-founder faces 20 years in prison, main suspect Ruja Ignatova still at large

OneCoin co-founder Karl Sebastian Greenwood was extradited back to the United States as early as 2018, and now there has finally been progress in the lawsuit.

Co-Founder of OneCoin Cryptocurrency, Konstantin Ignatov, Sentenced to 20 Years in Prison

According to a press release from the Southern District of New York United States Attorney's Office on September 12, Konstantin Ignatov, co-founder of OneCoin, was arrested in Thailand in July 2018, extradited to the United States in October, and has been in custody since then.

The case is being prosecuted by the Department of Justice's Computer Crime and Intellectual Property Section. In addition to the 20-year prison sentence, he will also be required to forfeit $300 million.

OneCoin Scam Involving Over $4 Billion

The press release states that Konstantin Ignatov co-founded OneCoin Ltd. in 2014. Between the fourth quarter of 2014 and the fourth quarter of 2016, OneCoin made profits of over $4 billion through at least 3.5 million victims.

Legal documents reveal that Ignatov conceived of OneCoin and sold it through a multi-level marketing structure. Members recruited downlines to purchase coins, which would earn them bonuses. Ignatov, as the head of the direct selling chain, received 5% of OneCoin's global monthly sales, totaling around $300 million.

The documents also detail Ignatov's lavish spending, including $2 million on luxury clothing, shoes, and watches, purchasing a Sunseeker yacht for £475,000, properties in Spain, Dubai, and Thailand, and traveling on a private jet paid for by OneCoin.

Since the inception of OneCoin, Ignatov used the popularity of Bitcoin to convince investors that OneCoin was an unmissable investment opportunity. At conferences, they emphasized the explosive growth of Bitcoin, such as BTC increasing 75 times in 2013. However, in reality, OneCoin had no connection to blockchain technology or public ledgers.

Main Suspect of OneCoin, Ruja Ignatova, Still on the Run

The primary founder of OneCoin is Ruja Ignatova, also known as Dr. Ruja. She had spoken at The Economist's summit, presenting OneCoin as a project utilizing blockchain technology and recruiting a large number of high-profile individuals as members.

In October 2017, Ignatova was initially charged with fraud and money laundering. She fled to Greece that month and was subsequently listed as one of the FBI's top ten most wanted criminals.

Earlier, Bulgarian media outlet "Bird" had reported that she was allegedly murdered by a well-known local drug lord, but law enforcement agencies have not confirmed this information.

The Department of Justice continues to seek information on Ignatova's whereabouts and encourages the public to report any leads through the online portal, local FBI offices, or U.S. embassies.