Konstantin Ignatov, brother of the infamous “Cryptoqueen” Ruja Ignatova, has been released from prison after serving 34 months for his involvement in the OneCoin cryptocurrency fraud scheme. Ignatov’s release comes after cooperating with prosecutors and agreeing to forfeit $118,000 in ill-gotten gains.
Release and cooperation
District court judge Edgardo Ramos granted Ignatov a “time served” verdict on March 5, acknowledging his cooperation with prosecutors. Ignatov, once considered the “defacto leader” of the OneCoin scheme, pled guilty to money laundering and fraud charges in 2019. Ignatov will remain under court supervision for the next two years despite his release.
During the hearing, Ignatov expressed remorse for his actions, taking full responsibility for his role in the fraud scheme. He admitted to the emotional toll of the past five years but expressed gratitude for the lessons learned.
Ignatov’s cooperation with U.S. prosecutors included testifying against former lawyer Mark Scott, who was convicted of laundering $400 million from the OneCoin scheme. Ignatov’s testimony was crucial to Scott’s conviction, resulting in a 10-year prison sentence.
OneCoin fraud scheme
Described by Judge Ramos as “a massive fraud with hundreds of thousands of victims,” the OneCoin scheme operated between 2014 and 2018, raising $4.4 billion. It promised investors high returns and positioned itself as a rival to Bitcoin, ultimately defrauding countless individuals worldwide.
Despite Konstantin Ignatov’s cooperation, his sister Ruja Ignatova, also known as the “Cryptoqueen,” remains elusive. Ignatova’s whereabouts are unknown, and she is currently on the FBI’s “Ten Most Wanted” list, facing charges of wire fraud, securities fraud, and money laundering.
Legal ramifications for other participants
Konstantin Ignatov’s release follows the sentencing of Karl Sebastian Greenwood, another key figure in the OneCoin scheme, who received a 20-year prison sentence for fraud and money laundering. These legal actions underscore the severity of consequences for those involved in cryptocurrency fraud schemes.
