The American authorities have arrested Cryptocurrency chief of the OneCoin. The prosecutors allege that OneCoin was a pyramid scheme (A dishonest scheme and usually illegal in which many people are persuaded to invest and the money of the later investor is used to pay the people who invested first) rather than a full proof one.

Konstantin Ignatov was arrested on a wire fraud conspiracy cost, whereas his elder sister, Ruja Ignatova, has been indicted for cash laundering, and wire and security fraud, in an unsealed document released yesterday.

OneCoin is a Bulgaria based firm. The firm has carried on a number of marketing and advertising schemes that include paying customers some amount if they introduced One coin to other people.

A lot of legal experts in the United States have remarked on the arrest and indictment and here is what they had to say:

Manhattan-based legal professional Geoffrey Berman says in a authorities press launch that the OneCoin leaders created a multibillion-dollar firm “based completely on lies and deceit.” In a short interval between 2014 and 2016, OneCoin made €3.353 billion (roughly $3.7 billion) in income.

“These defendants executed an old-school pyramid scheme on a new-school platform,” New York County District Attorney Cyrus Vance mentioned in an announcement.

The company, One coin used petty tricks to cheat its customers and made them believe that they will multiply the value of their cryptocurrency by multiple times from approximately half Euros to almost thirty Euros.

The project of the company to cheat people started falling out when they wanted to cash out of the company to invest in other projects and then Ignatov lashed out at them saying that they had no place in the company if they wanted to lash out of the project stating that they did not know and respect the importance of the mission.

About Ritika Sharma

Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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