Konstantin Ignatov, released in the midst of the OneCoin scandal, expresses remorse for defrauding $4.4 billion.

Konstantin Ignatov, who was implicated in the OneCoin cryptocurrency scandal and defrauded investors of $4.4 billion, has been released from prison after serving 34 months. The decision to release him was made by Judge Edgardo Ramos, who deemed his time in custody prior to sentencing as sufficient punishment. During the court hearing, Ignatov expressed remorse for his actions and the suffering caused. He admitted his mistakes and stated that the past five years had been a painful period, but he was grateful for the lessons learned.

Following the disappearance of his sister, Ruja Ignatova, also known as the “Cryptoqueen,” in 2017, Ignatov assumed a prominent position within the OneCoin organization. In 2019, he pleaded guilty to charges of money laundering and fraud. He played a crucial role in the prosecution of a lawyer involved in laundering $400 million from the scheme by providing testimony against him.

Ignatov’s cooperation with U.S. prosecutors greatly influenced the reduction of his sentence. Although Judge Ramos referred to the OneCoin operation as a “massive fraud with hundreds of thousands of victims,” he acknowledged Ignatov’s assistance in the trial against Scott as a mitigating factor.

Ignatov’s testimony led to the conviction of Mark Scott, who was instrumental in the OneCoin fraud by laundering funds. Scott was sentenced to 10 years in prison in January 2024. As part of his sentence, Ignatov, who is now under two years of court supervision, must forfeit $118,000 that he earned from his involvement with OneCoin.

Legal actions against those involved in the OneCoin scam have been ongoing. Karl Sebastian Greenwood, a co-founder of OneCoin, has received significant legal consequences for his role in the fraud. He was recently sentenced to 20 years in prison for his involvement in the money laundering activities associated with the scam.

The case of Irina Dilkinska, the former head of OneCoin’s legal department, highlights the extensive network of individuals involved in facilitating the scam. Dilkinska has pleaded guilty to fraud and money laundering charges for transferring funds to offshore accounts beyond her official duties. She faces a potential 10-year prison sentence, and her sentencing is scheduled for February 14.

The repercussions of the OneCoin scam continue, with various individuals facing legal consequences for their participation. It serves as a reminder of the importance of regulatory clarity to prevent fraud from thriving in the cryptocurrency industry.