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.

Read this next

Executive Moves

Christine Kiener joins Saxo Markets UK as Head of Institutional Sales

“I have been very impressed by the strong track record, clear strategic pathway and ambition of the Saxo business. I am excited to start working with the team to further grow the institutional footprint which has been established in the UK.”

Industry News

CFTC charges Rathnakishore Giri with $12m Bitcoin ponzi scheme

“Identifying and policing fraud in these emerging markets may be difficult or delayed in light of the agency’s limited visibility in these markets”, said CFTC Commissioner Kristin Johnson.

Institutional FX

AbbeyCross raises $2.47m to develop FX market infrastructure for EM currencies

Many EM currencies are currently traded without full-price discovery, creating an unlimited compliance and regulatory risk.

Digital Assets

YouHodler enhances Multi HODL: faster rates and execution, lower fees

“We know some traders mentioned freezing issues when opening or closing a Multi HODL deal. Now, those problems are completely gone”.

Industry News

ASIC bans Funds United Pty director for six years

The six-year ban will prevent Ms. Hutchinson from controlling an entity that carries on a financial services business, and performing any function within the industry.

Inside View

Brave new world: Recruitment of fintech talent in the new UK immigration environment

In this article, solicitor Denise Osterwald outlines what UK businesses should do to attract top talent from abroad.

Digital Assets, Interviews

FX goes Crypto: Exclusive interview with BVNK’s Jonathan Cumberlidge

BVNK is the new name in the City of London. Co-founded by ex-TradFi Chris Harmse, Balfour Group founder Jesse Hamson-Struthers, and ex-TrueLayer George Davis, the firm provides a single platform to bridge fiat and crypto together. 

Digital Assets

AAX ranked world’s second largest spot exchange, only behind Binance

Crypto trading volumes experienced their first surge in activity since March as the majority of digital assets began their recovery from the recent grim price action, according to a new report by Cryptocompare.

Digital Assets

Bitpay teams up with Cardlytics to provide 15% cashback rewards

Crypto payment service provider Bitpay announced a partnership with Cardlytics Inc (NASDAQ:CDLX), which it says will offer more rewards for BitPay cardholders on its platform.