Konstantin Ignatov, the brother of OneCoin's 'Cryptoqueen,' released after serving 34 months for his role in the $4.4 billion fraud scheme. 'Time served' verdict with court supervision and funds forfeiture.
The sibling of Ruja “Cryptoqueen” Ignatova has been released from incarceration after spending 34 months behind bars due to his involvement in OneCoin’s notorious $4.4 billion fraudulent scheme.
Konstantin Ignatov, formerly considered the 'de facto leader' of the OneCoin sha, received a 'time served' verdict from district court judge Edgardo Ramos on March 5, as reported by Bloomberg.
A 'time served' verdict signifies the court's determination that the defendant has served an appropriate duration in jail while awaiting another sentencing hearing.
During the hearing, an 'emotional' Ignatov accepted full responsibility for his actions, as reported by Law360 on March 5, stating, “I can only blame myself [...] still have trouble looking into my own eyes in the mirror. The last five years were a very painful period in my life, but I’m glad for the lessons I’ve learned.”
“I can only blame myself [...] still have trouble looking into my own eyes in the mirror. The last five years were a very painful period in my life, but I’m glad for the lessons I’ve learned.”
However, Ignatov is mandated to spend the next two years under court supervision and forfeit $118,000 of the funds earned during his tenure at OneCoin.
Arrested in 2019, Ignatov pleaded guilty to money laundering and fraud charges later that year.
Ignatov's 'time-served' verdict follows his cooperation with U.S. prosecutors, where he testified against former lawyer Mark Scott, convicted of laundering $400 million from the OneCoin scheme. Scott received a 10-year imprisonment sentence on January 25, 2024.
In the hearing, Judge Ramos characterized the OneCoin scheme as 'a massive fraud with hundreds of thousands of victims,' giving credit to Ignatov for aiding prosecutors in Scott’s trial.
Prosecutors asserted that Ignatov assumed leadership of the OneCoin scam after his sister disappeared in 2017.
Ruja Ignatova’s whereabouts remain unknown, and she is currently on the Federal Bureau of Investigation’s (FBI) 'Ten Most Wanted' list, facing charges of wire fraud, securities fraud, and money laundering.
Karl Sebastian Greenwood, a key promoter of OneCoin, recently received a 20-year prison sentence for charges related to fraud and money laundering.
OneCoin, a cryptocurrency Ponzi scheme originating in Bulgaria, raised $4.4 billion between 2014 and 2018, enticing investors with promises of outsized profits and guaranteed returns, marketing itself as a 'Bitcoin killer' to attract unsuspecting victims.