Konstantin Ignatov was arrested by the FBI in March 2019 as one of two suspects that ran the OneCoin operation. According to Finance Magnates, investors claim to have lost nearly $4bln in the cryptocurrency scam and were seeking payment for the losses through a class action lawsuit.
It’s believed that Ignatov acted as an assistant to his sister Ruja Ignatova who has been identified as the founder of the OneCoin scheme. Ignatova is currently on the run from law enforcement agencies.
Ignatov himself has been a key figure for authorities, having helped provide information that saw OneCoin’s legal representative Mark Scott convicted of $400mln for money laundering. Scott was found guilty of money laundering and bank fraud and prosecutors believe he made nearly $50mln for laundering the ill-gotten gains from OneCoin’s operations.
The settlement comes amid serious pressure from US courts on the plaintiffs of the class action lawsuit. The courts were considering dismissing the lawsuit in April and were pressing the investor’s legal team to provide reasons not to. This was mainly due to the lead plaintiff Donald Bordeaux missing deadlines for monthly reports to the courts.
Ignatov to help legal case against OneCoin
Part of Ignatov’s settlement agreement with the plaintiffs could see him called to testify on behalf of investors in further court proceedings against OneCoin, as per the court documents released this week.
Ignatov will also be required to meet with the legal team of investors and will provide any information and documentation that could help in the case against OneCoin.
Ignatov has already been charged with multiple counts of money laundering. His sentencing had been postponed by four months in July 2020 because of his cooperation with investigators. He was facing up to 90 years in jail for the various counts against him. The main reason for the delay in sentencing was due to Ignatov’s role in working with prosecutors to help investigate the multi-level marketing scheme.
OneCoin investigated in various countries
OneCoin is believed to be a multi-level marketing scheme that has duped over 3 million members around the world into the ponzi scheme.
Members were paid commission for introducing new members to the scheme, who purchased its own cryptocurrency token.
The operation caught the attention of regulators and authorities in different countries. According to the Bulgarian prosecutors office, companies associated with the scheme were under investigation in England, Ireland, Italy, the United States, Canada, Ukraine, Lithuania, Latvia and Estonia.
As The Daily Chain previously reported, investors may have been convinced to get involved with the project due to fake reviews on on TrustPilot and Quora.
Mastermind still on the run
Ruja Ignatova is still wanted by authorities for her role in setting up and running the OneCoin operation in Bulgaria.