Konstantin Ignatov, the brother of the infamous "Cryptoqueen" Ruja Ignatova, has been released from prison after serving a 34-month sentence for his involvement in OneCoin's fraudulent scheme, which amounted to $4.4 billion. Ignatov, once considered the de facto leader of OneCoin, was granted a "time served" sentence by District Court Judge Edgardo Ramos in March, as reported by Bloomberg on the 5th.
A "time served" sentence indicates that the court deems the defendant to have spent an adequate amount of time in prison while awaiting further sentencing hearings. During the hearing, Ignatov expressed remorse for his actions, taking full responsibility and acknowledging the painful consequences of his involvement. He emphasized his personal growth and learning from the experience over the past five years.
Despite his release, Ignatov will be subject to court supervision for the next two years and is required to surrender $118,000 in earnings obtained during his tenure at OneCoin. Ignatov's legal troubles began in 2019 when he was arrested and later pleaded guilty to charges of money laundering and fraud. His sentence follows his cooperation with U.S. prosecutors, including testifying against former attorney Mark Scott, who was convicted of laundering $400 million in the OneCoin scheme and sentenced to 10 years in prison on January 25, 2024.
During the sentencing, Judge Ramos characterized the OneCoin scheme as a massive fraud that victimized hundreds of thousands of individuals. However, he commended Ignatov for his cooperation with prosecutors in Scott's trial. Prosecutors allege that Ignatov assumed a leading role in the OneCoin scam following his sister's disappearance in 2017. Meanwhile, Ruja Ignatova remains a fugitive, with her whereabouts unknown and her name listed on the FBI's "Ten Most Wanted" list. She faces charges of wire fraud, securities fraud, and money laundering in absentia by U.S. authorities.
