Gilbert Armenta, a Florida man tied to OneCoin founder Ruja Ignatova, faced federal charges for his role in the cryptocurrency scam’s money laundering schemes. A grand jury indicted him on September 12, 2017, on charges including extortion.

Armenta was arrested in Connecticut the next day. Court proceedings in New York on September 18 set his bail at $5 million. He was ordered to remain in Manhattan, observe a 6 p.m. curfew, and wear a GPS monitor. His passport, along with those of his adult children, was surrendered. Armenta initially pleaded not guilty to the criminal charges.

The Department of Justice filed an updated indictment on January 24, 2018, adding more charges. Armenta then faced five counts: conspiracy to commit wire fraud, three counts of conspiracy to commit money laundering, and conspiracy to commit extortion. Prosecutors alleged Armenta facilitated the OneCoin scheme by opening bank accounts in Mexico and South America, managing OneCoin pool accounts internationally, hiring a reputation management firm to remove negative online information about OneCoin, and transferring funds to pay recruitment commissions and refunds. He also allegedly moved OneCoin proceeds through U.S. and foreign accounts, misrepresenting fund sources to banks to launder the money.

Regarding extortion, the DOJ claimed Armenta conspired with others to use threats of physical harm to collect a payment. The target was an individual in the United Kingdom believed to have stolen funds intended for international wire transfer. The identity of this individual was not disclosed in court documents.

On the same day the superseding indictment was unsealed, Armenta changed his plea and admitted guilt to all five charges. Court testimony revealed Armenta agreed to cooperate with the FBI after his September 2017 arrest.

No filings appeared in Armenta’s case between March 27, 2018, and April 2020. On April 29, 2020, the DOJ requested his case be unsealed, suggesting his cooperation with authorities had concluded. His sentencing hearing was scheduled for May 29, to take place on July 23. Citing COVID-19 and claiming stress, Armenta requested the hearing be conducted via video conference on July 7.