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The founders of the international digital currency pyramid scheme OneCoin were charged with fraud after taking part in marketing the coin. The announcement was published by the US Attorney Office today and it reached our crypto news so let’s read more about the decision.

OneCoin founders Konstantin Ignatov and his sister Ruja Ignatova were arrested in Los Angeles and were charged with wire fraud, money laundering, and securities fraud by making investors contribute billions of dollars in the cryptocurrency.

The fraudulent cryptocurrency was established back in 2014 in Sofia, Bulgaria. The project works as a marketing network where members receive commissions for attracting other investors that are likely to invest in the currency packages. OneCoin at one point had over three million members across the world.

When Konstantin was asked how the members can cash out their coins, he told everyone who is interested in cashing out to leave the room because that is not the point of the project. After the charges, the US Attorney of Manhattan said:

 “As alleged, these defendants created a multibillion-dollar ‘cryptocurrency’ company based completely on lies and deceit. They promised big returns and minimal risk, but, as alleged, this business was a pyramid scheme based on smoke and mirrors more than zeroes and ones.  Investors were victimized while the defendants got rich. Our Office has a history of successfully targeting, arresting, and convicting financial fraudsters, and this case is no different.”

The New York County District Attorney Cyrus R. Vance Jr. claimed that the defendants created an old-school pyramid scheme compromising the integrity of the entire financial system in New York by defrauding investors for billions of dollars.