The leader of one of the most infamous cryptocurrency scams of 2018, Konstantin Ignatov, has entered a plea of not guilty to the charges of conspiracy to commit wire fraud.
One Coin became a hot topic earlier this year when authorities in the US arrested Konstantin Ignatov and his sister Ruja Ignatova on suspicions of illegal activity, regarding their company One Coin Ltd.
One Coin Ltd is a perfect example of a Ponzi scheme, and it became one of the most infamous scams involving cryptocurrencies. The way the company operated is simple – once you get involved with One Coin, you earn more by driving new investors to the cryptocurrency. One Coin Ltd was advertised as a marketing network, and Konstantin Ignatov gradually rose to high-level positions there.
According to the company website, anyone can mine One Coins easily, without the need to buy any additional hardware, and the value of the token is solely determined by supply and demand. Unfortunately, this is not the case, as the value of the coin is internally set, and the coin cannot be mined using computer hardware.
These inconsistencies have angered many affected users, and there is even a petition started so that the scammers can be brought to justice.
Despite the severe backlash and the pending charges, Konstantin Ignatov continues to maintain his innocence and even pushes news about a One Coin initial coin offering, scheduled for 2019.
The investigation against One Coin is also looking into an American citizen, Mark S. Scott, who was part of the legal team of the company. There are suspicions that Mr Scott used several investment funds, through which, he managed to launder One Coin earnings.