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The recent buzz in many crypto news outlets, both online and offline, is the latest updates in the trial of Konstantin Ignatov, the founder of the alleged crypto Ponzi scam OneCoin.
Ignatov was the top executive of OneCoin and he is now on the news once again for the sole reason that his bond application was unsurprisingly rejected on June 28 by a judge in New York Southern District Court. This means that Ignatov will have no choice but to await his trial from inside a jail cell, even though his defense attorney has put forth diverse conditions all in a bid to enable his OneCoin client to be free from custody.
Some of these conditions that Ignatov’s lawyer offered were a cash payment of $10 million and also the provision of personal property in an attempt to secure a $20 million private recognizance bond. Also, Ignatov was more than willing to pay for twenty-four hours armed guard security for himself that would make sure of the fact that he has no escape plan in motion.
Additionally, there was a stipulation that Ignatov will have no access to neither his cell phones nor his computers besides for the purpose reviewing his trial materials.
Not Trusting OneCoin’s Ignatov
The judge on Ignatov’s case is Judge Edgardo Ramos, and after he reviewed the bond application brought before him, he rejected it in a harsh manner. This rejection had to with understandable trust issues of the prosecutors for the United States government with Ignatov. Their reason revolved around not being able to trust Ignatov to keep to his end of the bargain when released.
Moreover, the prosecutors’s assertions were derived from the simple fact that Ignatov has already lied to multiple officials: the border agents of the United States, the agents responsible for the case, and not forgetting the Pre-trial Services Officers that attempted to determine Ignatov’s possibility of a befitting bail.
Earlier before the report made it to the crypto news sphere, the prosecuting attorneys already explained to Judge Edgardo that they had no reason to believe any stipulated condition or amount of bail was strong enough to make sure Ignatov would actually appear in court. Furthermore, they did not fail to mention that Ignatov has no real connections to the United States as well as having the capability to run away from the US to other countries.
Having to go through the struggles of extraditing him again was more than sound reason enough for the judge to deny his bail.
Reasons for Ignatov’s Arrest and Labeling OneCoin as a Scam
Konstantin Ignatov was arrested back in March at the Los Angeles international airport.
Also, he was charged with counts of wire fraud conspiracy as well as a case of cryptocurrency fraud that was filed against not just him but Ruja Ignatov, his sister, as well. Ignatov already pleaded not guilty to the charges.
The popular crypto scheme OneCoin was established in 2014 but swiftly earned its notoriety as a prospective Ponzi scheme. OneCoin was capable of raising about $3.8 million from its investors with the aid of a low risk yet high reward pitch. However, it did not take regulators from all over the world much time to label OneCoin as a scam.