US Govt insists OneCoin’s leader presents risk of flight

Maria Nikolova

According to the Government, no combination of bail conditions will assure the appearance of Ignatov in this case or protect the community from the danger posed by him.

Shortly after Konstantin Ignatov, the leader of fraudulent cryptocurrency scheme OneCoin, filed his bail request with the New York Southern District Court, the United States Government has made clear that it opposes the defendant’s motion.

In a Letter Response submitted with the Court on June 27, 2019, the Government argues that Konstantinov has to be detained pending trial.

Let’s recall that the defense 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.

Today, the Government argued that neither the conditions proposed by Ignatov in his request, nor any other combination of bail conditions, will reasonably assure his appearance in this case or protect the community from the danger posed by him.

The authorities note that Ignatov has no ties whatsoever to the United States, possesses citizenship and other ties to countries that will not extradite to the United States, has engaged in extensive international travel, and has access to massive foreign financial resources.

“He simply cannot be trusted to comply with any conditions set by the Court, having already lied to U.S. border agents, investigating case agents, and even the very Pretrial Services Officers tasked with evaluating appropriate bail in this case”, the US Government says.

OneCoin’s office in downtown Sofia, Bulgaria.

Moreover, the Government notes that the defendant’s sister and co-conspirator, Ruja Ignatova – who the defendant described as his “best friend” during his post-arrest statement – has herself disappeared, fleeing prosecution shortly after sealed charges against her were filed by the United States in October 2017.

Finally, given that the OneCoin fraud scheme continues to operate to this day, and that the defendant recently travelled to the United States to participate in meetings related to the operation of OneCoin in this country, his release would also endanger the economic safety of the community, the Government says.

According to the Government, given the unprecedented risk of flight that the defendant presents, along with the danger of ongoing economic harm, the Court should follow the recommendations of the Pretrial Services Offices for both the Central District of California and the Southern District of New York and the prior ruling of the Honorable Gail J. Standish, CDCA United States Magistrate Judge, and detain the defendant pending trial.

The bail hearing has been rescheduled for June 28, 2019.

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