According to breaking
The leader of the pyramid scheme, Konstantin Ignatov was arrested on March 6 at the airport in Los Angeles on a wire fraud conspiracy stemming from his role as the leader in the pyramid scheme.
On March 8, the U.S. Attorney Office of the Southern District of New York charged the founder alongside Ruja Ignatova, his sister on their involvement in the Scam following their arrest.
This is, however, not the first Onecoin news surfacing the crypto community as many other countries have in the past warned their citizens about the coin and advised them to stay away from the scam.
For those who don’t know Onecoin, it is based in Bulgaria’s capital, Sofia and was first brought to light in 2014. The founders also promised its investors the coin will make them “filthy rich”.
To be part of the Onecoin family, it’s interested parties were required to invest between 110 euros to 27,500 euros to get “tokens” and not Onecoin.
“Your joining fee – ranging from a £100 Starter Package to £28,000 for a Special Combo Package – does not buy OneCoins themselves. Instead, it just buys you tokens. The idea is that these can later be exchanged or ‘mined’ to get OneCoins. Some deals involve so-called splits which double your stash of tokens.”
In past Onecoin news, the founder was asked when the coin’s investors could expect to cash out during an investor’s meeting in Las Vegas, he replied saying “if you [investors] are here to cash out, leave this room now because you don’t understand what this project is about”
According to the New York District Attorney Cyrus Vance “These defendants [the founders] executed an old school pyramid scheme on a new school platform, compromising the intergrity of New York’s financial system and defrauding investors out of billions”
Manhattan U.S. Attorney, Geoffrey Berman also commented on the charges stating
“As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company based on complete lies and deceit. They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and one. Investors were victimized while the defendants got rich. Our office has a history of successfully targeting, arresting and convicting financial fraudsters, and this case is no different”
What are your thoughts on this unfolding