Sentencing for the co-founder of the major crypto scam OneCoin has been postponed for a further three months at the request of the United States government.
Konstantin Ignatov, the leader of OneCoin Ltd., a company marketing a purported cryptocurrency named “OneCoin,” was arrested on March 6, 2019, at the Los Angeles International Airport. He is charged with wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.
The week, the New York Southern District Court approved a motion to adjourn the sentencing control date for Konstantin Ignatov, brother and accomplice of OneCoin co-founder and current fugitive Ruja Ignatova, a.k.a the “Cryptoqueen.”
Originally set for April 8, Ignatov’s sentencing date will now take place on July 8, 2020.
As reported, OneCoin is among the industry’s most infamous exit scams. Founded in 2014, the Bulgaria-based firm remained fully operational until late November 2019, despite ongoing criminal proceedings in the wake of allegations that it had fraudulently raised at least 4 billion euro ($4.4 billion) in a Ponzi scheme.
Following his arrest at Los Angeles International Airport in March 2019, Ignatov pled guilty to participating in the multi-billion dollar fraud in fall 2019. He faces up to 90 years in jail.
With his sister still on the run, he has served as a cooperating witness in the trial against Mark Scott, the lawyer who allegedly helped launder nearly $400 million via the scam.
In its April 6 letter, the U.S. government claimed that Ignatov’s cooperation was “not yet complete.” As well as requesting adjournment, the government sought to unseal a series of documents and noted that the defense had consented to its application.
As reported, Ignatov has previously testified that after his sister had fled, the security personnel who accompanied her told him that she had met with Russian speakers. One investigative journalist has since alleged that Ignatova claims to have the support and protection of an unnamed “rich and powerful” Russian individual.
In November 2019, Mark Scott was found guilty of helping Ignatova to launder the ill-gotten OneCoin funds via a wide network of fake companies, offshore bank accounts and sham investment schemes.