Konstantin Ignatov, brother of the notorious "Cryptoqueen" Ruja Ignatova, has been freed from incarceration after serving 34 months for his involvement in the OneCoin cryptocurrency fraud scheme, which swindled investors out of approximately $4.4 billion. His release was granted by District Court Judge Edgardo Ramos on March 5, following Ignatov's cooperation with U.S. prosecutors and his agreement to forfeit $118,000 in illicitly obtained gains, as reported by Bloomberg.

Ignatov's sentence, termed a "time served" verdict, acknowledges the period he spent in custody awaiting further legal proceedings as sufficient punishment for his crimes. This decision came after Ignatov's emotional testimony during the hearing, where he expressed deep remorse for his actions, admitting that the past five years had been a painful lesson in his life.

As the "de facto leader" of OneCoin following his sister's disappearance in 2017, Ignatov was apprehended in 2019 and subsequently pleaded guilty to money laundering and fraud charges. His cooperation with the prosecution led to the conviction of Mark Scott, a former lawyer implicated in laundering $400 million from the OneCoin scheme. Scott received a 10-year prison sentence on January 25, 2024.

During the hearing, Judge Ramos highlighted the enormous scale of the OneCoin scam, emphasizing its impact on hundreds of thousands of victims. However, Ignatov's willingness to assist in the case against Scott was recognized as a significant contribution to the prosecution's efforts.

Ruja Ignatova, the mastermind behind OneCoin, remains at large and is featured on the Federal Bureau of Investigation's (FBI) "Ten Most Wanted" list. She faces charges in absentia for wire fraud, securities fraud, and money laundering. Meanwhile, another key promoter of OneCoin, Karl Sebastian Greenwood, has been sentenced to 20 years in prison for his role in the scheme.

Originating from Bulgaria, OneCoin was marketed as a "Bitcoin killer," promising investors high returns and guaranteed profits. However, it was later exposed as a Ponzi scheme, leading to one of the most infamous fraud cases in the cryptocurrency world. The fallout from OneCoin continues to unfold, shedding light on the dark side of the digital currency boom.