OneCoin Founder's Brother Faces 90-Year Jail Term After Plea Deal

Published on by Coindesk | Published on

The Department of Justice reached a plea deal with Konstantin Ignatov for his involvement in OneCoin Ltd., a cryptocurrency project based out of Bulgaria.

Ignatov pleaded guilty to multiple counts including money laundering, according to the BBC. The deal was reached Oct. 4, but released publicly Tuesday following his arrest at Los Angles International Airport in March 2019.

He is the brother of OneCoin co-founder Dr Ruja Ignatov, colloquially called "Cryptoqueen" for her actions in the alleged scam and subsequent disappearance.

Under the terms of the plea, Ignatov will not face further charges as they emerge against OneCoin and its constituents, with the exception of possible tax violations.

Still, Ignatov faces up 90 years in prison, the BBC said.

OneCoin raised some $4 billion for its cryptocurrency and proprietary ecosystem in funding, in what multiple governments have called a Ponzi scheme.

The BBC said Ignatov could be moved into the U.S. witness protection program depending on the longevity of his sentence.

While testifying in another ongoing case against Mark Scott, a U.S. lawyer accused of laundering funds $400 million from OneCoin, Ignatov revealed more details about his sister, the BBC said.

The BBC said Ignatov told the court that his sister acquired a passport and tickets to Vienna and Athens from her home in Bulgaria.

Although Ignatov hired a private investigator to find her, he has not spoken to her since her disappearance, according to the BBC. Lady justice image via Shutterstock.

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