Americans Arrest Leader of Cryptocurrency Project OneCoin

The US authorities have announced legal action against OneCoin, a digital currency alleged to be a pyramid scheme. The leader of OneCoin was arrested in Los Angeles and is in prison for the time being.

A press release from New York prosecutors explains the action taken, including saying that OneCoin leader Konstantin Ignatov has been arrested at the Los Angeles airport. The prosecutors speak of a fraudulent cryptocurrency project, which would involve a pyramid scheme. For example, members who bring in new members would get rewards.

In addition, OneCoin would claim that the digital coins are collected by the company’s servers, and it also claims that the price is created ‘organically’. Both claims are false, the US authorities say. All in all, it is an ‘old-school pyramid scheme on a new-school platform’, according to the prosecutors.

Ignatov is currently in jail on suspicion of fraud. In addition, a charge has also been filed against his sister. Together they would have made billions of dollars in revenue with OneCoin. The digital currency has been in the sights of the authorities for some time, including outside the United States.