OneCoin leader Konstantin Ignatov asks Court for bail pending trial

Maria Nikolova

The defense counsel proposes release conditions including GPS location monitoring and $10 million in cash and properties securing a $20 million personal recognizance bond.

Konstantin Ignatov, the leader of ill-famed cryptocurrency scheme OneCoin, who stands accused of conspiracy to commit wire fraud, is asking for bail pending trial. The relevant documents were docketed on June 18, 2019.

The request was made in a Letter to Judge Edgardo Ramos of the New York Southern District Court.

The defense counsel proposes release conditions including GPS location monitoring of Ignatov and $10 million in cash and properties securing a $20 million personal recognizance bond. Further, the defendant will pay for 24-hour armed guards to ensure that he does not flee. Only pre-authorized individuals would be permitted inside his residence. Ignatov agrees not to use cellphones, nor a computer, apart for purposes of reviewing discovery and note taking.

There will be no involvement with anybody at OneCoin as a part of the proposed release conditions.

Let’s recall that Konstantin Ignatov has entered a plea of “not guilty” to Count 1 – conspiracy to commit wire fraud.

According to the allegations contained in the Complaint, starting in late 2017, Ignatov, assumed high-level positions at OneCoin, rising to the top leadership position by mid-2018.

OneCoin Ltd. is said to be operating as a multi-level marketing network through which members receive commissions for recruiting others to purchase cryptocurrency packages. This multi-level marketing structure appears to have influenced rapid growth of the OneCoin member network. Indeed, OneCoin Ltd. has claimed to have more than 3 million members worldwide, including victims living and/or working within the Southern District of New York.

Among a number of other representations, OneCoin Ltd. has claimed that the OneCoin cryptocurrency is “mined” using mining servers maintained and operated by the company, and that the value of OneCoin is based on market supply and demand. In fact, the value of OneCoin is determined internally and not based on market supply and demand; and OneCoins are not mined using computer resources.

Additionally, OneCoin Ltd. has claimed to have a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions. The investigation has revealed that OneCoin lacks a true blockchain, that is, a public and verifiable blockchain.

Furthermore, Ignatov has repeatedly represented that an “initial public offering” of OneCoin would occur on various dates in 2018 and 2019, in an effort to generate excitement and solicit additional investments from member victims. However, the purported offering was repeatedly postponed, and no such offering has taken place.

Image: OneCoin’s office in Sofia, Bulgaria.

Read this next

Digital Assets, Inside View

XRP, DOGE, ADA, ETH, BTC take heed of Big Short’s Michael Burry warning: “Mother of all crashes”

“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries.”

Digital Assets

BBVA throws open bitcoin (BTC) trading for its private banking clients in Switzerland

BBVA, one of the major banks in Spain with a fully owned franchise in Switzerland, has announced that bitcoin trading and storage would be available for its private banking clients in Switzerland.

Industry News

Standard Chartered gets a new CIO, thanks to ING

Standard Chartered has hired Roel Louwhoff as its new chief of digital, technology, and innovation officer to replace the outgoing CIO Michael Gorriz.

Industry News

Cost of compliance for AML regulations in UK hits the roof

A survey undertaken by LexisNexis Risk solutions across financial firms has shown that the cost of adhering to compliance procedures exceeds the cost of criminal threats themselves.

Digital Assets

SEC’s ‘Crypto Mom’ says Ripple’s XRP doesn’t have to be a security

“When we think about a cryptoasset as being a security what we’re doing is we’re saying it’s being sold as part of an investment contract.”

Digital Assets, Inside View

SEC v. Ripple: When will the lawsuit end?

Ripple Labs needs to close this legal chapter with the SEC as soon as possible.

Inside View, Market News

Crypto Crash: Experts weigh in as leverage drives market both ways, including XRP

We spoke to thought leaders from Advanced Markets, FXOpen, and Equiti Capital to ascertain their view on what was behind last month’s crash as it is unlikely to be the last.

Digital Assets

BitMex hires Marc Robinson in push to going beyond derivatives

BitMex, one of the largest cryptocurrency derivatives exchanges in the world and a pioneer in this field, has announced the hiring of Marc Robinson as Head of Custody as it pushes to offer more services and products apart from derivatives.

Industry News

Trade.com acquires 65% of Activotrade, appoints ex-Saxo Guillermo Galey as CEO

For the past 20 years, Mr. Galey has been establishing and developing retail and institutional business in Iberia and Latin America.