OneCoin trial hears how several big banks handled fraud cash

Following Coin Rivet’s report on Friday that Konstantin Ignatov, the younger brother of missing OneCoin swindler ‘Cryptoqueen’, had agreed to inform on fellow Bulgarian crime associates, his criminal case has been delayed. 

Instead, prosecutors are now focusing on US lawyer Mark Scott’s role in the scam, who is accused of routing $400 million out of the US. 

The trial, which is set to conclude this week, resumed with today’s hearing in New York Southern District Court (SDNY). 

Yesterday, prosecutors at the trial wrote to SDNY Judge Ramos, in relation to Mr Scott, requesting that: 

“…the Court: (1) preclude the defendant from eliciting testimony from defense character witnesses regarding specific instances of the defendant’s conduct; and (2) instruct the jury that (a) the duty of client confidentiality cannot serve as a defense to criminal conduct; and (b) none of the email communications admitted by the Government at trial – including communications between the defendant and Ruja Ignatova – are privileged.”

According to a series of tweets by Inner City Press from the proceedings, the court heard how Scott used multiple bank accounts, both outside and inside the US, to move the ill-gotten funds. 

Rosalind October, working for the Manhattan DA’s office, identified funds arriving to OneCoin associated accounts in the Cayman Islands from Singapore, Hong Kong, Germany and Ireland. The Manhattan DA’s office produced a map in court showing the flow of funds to OneCoin accounts. 

Banking providers associated with these transfers included the Bank of Ireland, DMS Bank, and even the New York branch of Deutsche Bank. 

Coin Rivet reported on Friday 15 November that Konstantin Ignatov had previously pleaded guilty to money laundering, wire fraud, and two counts of bank fraud, but having agreed to testify against his associates he will face no further charges. 

It is believed that Dr Ruja Ignatova – dubbed ‘Cryptoqueen’ – is the mastermind behind the OneCoin Ponzi scheme, though her brother claims not to have communicated with her since October 2017. 

More than 70,000 investors in the UK alone were defrauded of their funds, with a total loss of over $5bn siphoned off through the pyramid scheme scam.