U.S. Charges Leaders of Multi-Billion Dollar Cryptocurrency Pyramid Scheme

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U.S. authorities filed charges against the leaders of an international and multi-billion dollar pyramid scheme involving the marketing of a fraudulent cryptocurrency called “OneCoin.”

On Wednesday, the Federal Bureau of Investigation (FBI) arrested Konstantin Ignatov, the leader of the OneCoin cryptocurrency pyramid scheme at the Los Angeles International Airport.

On Friday, the United States government charged Konstantin Ignatov for allegedly committing wire fraud conspiracy stemming from his role in leading the cryptocurrency pyramid scheme.

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The federal government also charged his sister, Ruja Ignatova, the founder and original leader of OneCoin for allegedly committing wire fraud, securities fraud, and money laundering.

“A pyramid scheme based of smoke and mirrors”

Ignatov and Ignatova co-founded OneCoin Ltd in Sofia, Bulgaria. The company is operating a multi-level marketing network, in which members purchase OneCoin cryptocurrency package and then recruit others to do the same to receive a commission.