US authorities has arrested Konstantin Ignatov, an executive in OneCoin, after allegedly orchestrating a “multibillion-dollar pyramid scheme”.
According to a report by engadget.com, Ignatov was charged with fraud while his sister Ruja Ignatova who is also charged but is currently hiding, as well as others were accused of being involved in the scheme where people received commissions for persuading people to buy OneCoin packages that themselves were junk.
OneCoin allegedly rigged prices and sold non-existent coins to people without even having a true blockchain to manage the currency.
US Justice Department said that the firm reportedly made €2.2 billion ($2.5 billion) in profit just between 2014 and 2016.
Meanwhile, Mark Scott, a third defendant who was earlier charged in the scheme was said to have laundered over $400 million through banks in Cayman Islands and Ireland.
If found guilty, Ignatov could be imprisoned up to 20 years; Ignatova with four charges could face 20-year maximum sentences and one with five; and Scott also faces up to 20 years of imprisonment.
(Photo source: notebookcheck.net/ cryptolinenews.com)