Justice has prevailed in another scam related crypto case which saw more than $3 billion stolen from victims. A leader of the group behind the crypto ponzi scam OneCoin has been arrested and now facing charges in the U.S.
OneCoin Ponzi Scam
The OneCoin ponzi scam leader who goes by the name Konstantin Ignatov and his sister Ruja founded the website in 2014. Ruja who is also facing multiple charges of fraud and money laundering is currently at large.
According to prosecutors, since its creation in 2014, the scam has generated $3.8 billion in revenue by Q3 2016. The OneCoin ‘tokens’ rose in alleged value from 50 euro cents to nearly €30 — this was done without the scam coin having a blockchain, utility, or a way of monitoring it.
Just like all Ponzi schemes, the project survived on money pumped into it by new investors. The existing members are then rewarded for bringing more people unto the platform. Since the news of its methods came to light, the coin has been labelled and flagged by several media as an MLM pyramid…