While regulators around the world have been kept busy trying to create adequate regulations for the cryptocurrency industry, law enforcement has been kept busy trying to prosecute the various crimes that take place within the crypto industry as with any emerging industry. This includes Ponzi schemes, exit scams and so on. These are more prevalent in certain parts of the world than others and while more information is being disseminated about cryptocurrency and how it works to prevent these crimes from taking place, they are inevitable to a certain degree.

According to a November 14, 2019 report, Konstantin Ignatov, who is the founder of alleged scam OneCoin, has pled guilty to running a multi-billion scam and now faced prison time.

Behind Bars

This plea was allegedly made on October 4, 2019, and by pleading guilty, Ignatov faces up to 90 years in prison. He was arrested in March 2019 at the Los Angeles airport and since he has pled guilty and is facing this long prison sentence, he allegedly will not be charged for any more participation of his in OneCoin except for potential tax violations.

OneCoin is one of the most famous crypto exit scams in recent times along with another scam Bitconnect. Interestingly enough, the firm is still operational to this day despite investigation from law enforcement over up to $4.4 billion being raised in a Ponzi scheme and Ignatov’s current guilty plea.

Besides his guilty plea, he also gave testimony against his sister Rudra Ignatov who had been referred to as the ‘Crypto Queen’. This was given during testimony in a trial against Mark Scott, who had laundered up to $400 million through OneCoin. According to the Ignatov brother, Rugav had obtained passports and tickets to Greece and Austria from her home in Bulgaria. He also stated that she was paranoid that those close to her would give her up to the FBI and he has not seen her since she disappeared and has gone as far as hiring a private investigator to find her.

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