Several major crypto-scammers and cyber criminals are set to face imprisonment this New Year. Here's an overview of the most high-profile cases.
The New Year has brought about legal repercussions for some prominent figures in the cryptocurrency world. Several individuals have been charged and sentenced for crypto-related offenses, marking a significant shift in the justice system’s approach towards crypto fraud.
The Case of Konstantin Ignatov
The notorious OneCoin scandal has finally come to a conclusion with Konstantin Ignatov, the brother of the founder of OneCoin, being sentenced to 90 years in prison. OneCoin, once hailed as a promising cryptocurrency, turned out to be a multi-billion-dollar Ponzi scheme that defrauded investors of billions.
While Ignatov pleaded guilty to charges of participating in the fraud and money laundering scheme, his sister, Ruja Ignatova, remains at large. She was charged in absentia and is currently a wanted fugitive.
John Bigatton, BitConnect Representative
John Bigatton, another renowned figure in the crypto world, is also facing legal trouble. As an Australian representative of BitConnect, a separate crypto scam that also collapsed, Bigatton is now facing six charges, including unregistered management of a managed investment scheme, providing unlicensed financial services, and dishonest conduct.
The charges come from the Australian Securities and Investments Commission (ASIC), and Bigatton could face up to 10 years in prison for each charge if convicted.
Mark Scott, OneCoin Money Launderer
Coinciding with the OneCoin case, Mark Scott, a former partner at Locke Lord LLP, was convicted of laundering $400 million for the OneCoin scheme. Scott was found guilty of conspiracy to commit money laundering and conspiracy to commit bank fraud. His sentencing is scheduled for early 2020.
The conviction of Scott marks the first time a major law firm partner has been convicted of assisting in a large-scale cryptocurrency fraud.
Conclusion
These three cases represent a trend of increased scrutiny and enforcement by law enforcement agencies worldwide. That sends a clear message that the wild west days of the cryptocurrency world are over, and illegal activities will be met with severe penalties.
While the crypto world offers significant potential for innovation and growth, it’s imperative that individuals and organizations operate within the confines of the law.
While it’s a positive step that the justice system is cracking down on crypto-related crimes, it’s essential to remember that the vast majority of people involved in the crypto industry are law-abiding citizens who see the potential in this new form of currency.
As we move into the New Year, it’s hoped that these high-profile prosecutions will serve as a deterrent to others considering similar fraudulent activities, and help clean up the reputation of the crypto world.
