The Southern District of New York (SDNY) has charged Konstantin Ignatov, Ruja Ignatova, and Mark Scott, for wire fraud, securities fraud, and money laundering. The charges stem from the roles Ignatov, Ignatova, and Scott played in what the SDNY calls "an international pyramid scheme" which involves the marketing of cryptocurrency project OneCoin.
OneCoin's main business model is selling educational cryptocurrency trading packages to its members. Members of OneCoin receive commissions for recruiting others to purchase packages. According to the SDNY, "this multi-level marketing structure appears to have influenced rapid growth of the OneCoin member network," with OneCoin claiming to have "more than 3 million members worldwide, including victims living and/or working within the Southern District of New York."