by • Ruja Ignatova (Cryptoqueen)’s ex-boyfriend, Gilbert Armenta was sentenced to five years in prison for laundering $300 million of investors’ money from the OneCoin venture.
• OneCoin was marketed as a digital currency that would transform the financial industry and promised substantial returns to investors who purchased the coins through multi-level marketing schemes.
• It was revealed to be a Ponzi scheme, with no actual cryptocurrency or blockchain technology backing it. Millions of investors were duped by the fraud.
Cryptoqueen’s Ex-Boyfriend Sentenced
The ex-boyfriend of fugitive Ruja Ignatova (also known as Cryptoqueen) has been sentenced to five years in prison for laundering $300 million in earnings from investors of the bogus crypto venture, OneCoin. Gilbert Armenta held several important posts in the OneCoin venture and pled guilty in 2018 to conspiring to commit wire fraud, money laundering, and extortion in relation to the OneCoin project.
OneCoin: A Fake Crypto Venture
In 2014, Ignatova launched OneCoin, a $4 billion multilevel marketing fraud based on a fake cryptocurrency. The currency was marketed as having a fixed quantity of 120 billion coins and being backed by gold reserves with blockchain technology better than Bitcoin. Investors were promised substantial returns if they purchased the coins and advertised them through multi-level marketing schemes where participants earned commissions for recruiting new investors. However, upon further investigation it was revealed that it was not supported by any blockchain technology or actual cryptocurrency but rather was just a Ponzi scheme causing millions of dollars worth of loss among its many victims worldwide.
Gilbert Armenta’s Help In Unraveling The Scam
Armenta aided prosecutors in unraveling this massive scam for two years while committing additional felonies which led authorities to seek a lengthier prison term for him despite his help with uncovering what happened. His conviction is one step closer towards bringing justice to those affected by this fraudulent enterprise.
Cryptocurrency Fraud On The Rise
The fraud resulting from companies like Onecoin is becoming increasingly common as cryptocurrencies become more popular due to their potential for high returns on investments compared with other asset classes such as stocks or bonds. Therefore it is important that investors watch out for these sorts of scams and protect themselves against losses caused by such fraudulent enterprises.
Conclusion
The sentencing of Gilbert Armenta is an important development towards bringing justice to those affected by this major scam and serves as an example that perpetrators will be brought before justice no matter how long it takes or how far they try and escape it.
