Brother of OneCoin Founder Released from Prison

Konstantin Ignatov, brother of OneCoin cryptocurrency pyramid founder Ruja Ignatova, has been released after three years in prison, according to Bloomberg.

The judge deemed the time he spent in custody awaiting the next hearing sufficient, taking into account his cooperation with the prosecution.

During the hearing, Ignatov took full responsibility for his actions, as reported by Law360.

“I have only myself to blame. The last five years have been a very painful period in my life, but I am grateful for the lessons I have learned,” he stated.

Ignatov has been ordered to spend the next two years under court supervision and to forfeit $118,000 obtained illegally.

Konstantin Ignatov was arrested in the spring of 2019 at Los Angeles airport. He pleaded guilty to several charges and testified against OneCoin scheme’s former lawyer Mark Scott. On January 25, 2024, Scott was sentenced to 10 years in prison for laundering $400 million and bank fraud.

The fraudulent scheme, founded by Bulgarian citizen Ruja Ignatova along with Karl Sebastian Greenwood, operated from 2014 to 2016. The OneCoin project was marketed as a high-yield cryptocurrency, where investors profited not only from the asset’s growth but also from recruiting new participants.

The damage from OneCoin’s activities is estimated at $4 billion.

Greenwood was sentenced in September 2023 to 20 years in prison and fined $300 million.

Ignatova’s whereabouts have been unknown since 2017. She is on Europol and the FBI’s most wanted lists. In February 2023, journalists reported her alleged murder, but this information has not been confirmed.