$4B OneCoin rip-off co-founder pleads responsible, faces 60 years jail


Related articles

Karl Sebastian Greenwood, the co-founder of the multi-billion greenback fraudulent cryptocurrency scheme OneCoin has pleaded responsible to a number of costs introduced ahead by the USA Division of Justice (DOJ) and faces a most of 60 years in jail.

The DOJ announced on Dec. 16 that Greenwood submitted a responsible plea in a Manhattan federal court docket to costs of wire fraud, wire fraud conspiracy and cash laundering conspiracy with every cost carrying a most potential sentence of 20 years in jail.

U.S. Legal professional Damian Williams mentioned Greenwood operated “one of many largest worldwide fraud schemes ever perpetrated” and claimed he touted OneCoin as a “Bitcoin killer” when in actuality the tokens have been “completely nugatory.”

OneCoin was a Bulgarian firm based by Greenwood alongside “Cryptoqueen” Ruja Ignatova that marketed a cryptocurrency by the identical title. Emails obtained by the DOJ between the 2 earlier than its founding in 2014 allege the pair referred to as it a “trashy coin.”

Greenwood on stage in Jun. 2016 at OneCoin’s “COIN RUSH” occasion in London. Picture: YouTube

Outwardly it claimed to be a multi-level advertising agency with members gaining commissions for promoting cryptocurrency packages apparently containing OneCoin and the power to mine extra. OneCoin might solely be exchanged for fiat forex on the personal Xcoinx trade.

In actuality, it was both a pyramid and a Ponzi scheme as buyers might recruit others into the scheme with out an precise product and later buyers have been paid with the cash from earlier buyers.

In keeping with the DOJ Greenwood was incomes round $21.2 million (€20 million) per 30 days in his position because the “international grasp distributor” of the fraudulent crypto agency. Over $4 billion is believed to have been swindled by OneCoin from the three million individuals who invested within the packages.

Ignatova was positioned on the Federal Bureau of Investigation’s top ten most wanted list in June for her position within the scheme. She stays at massive and was final recognized to have traveled to Athens, Greece in Oct. 2017.

Associated: How to tell if a cryptocurrency project is a Ponzi scheme

Williams mentioned Greenwood’s plea “sends a transparent message” the DOJ is “coming in any case those that search to take advantage of the cryptocurrency ecosystem by way of fraud, irrespective of how large or subtle you’re.”

Greenwood is slated to be sentenced earlier than District Choose Edgardo Ramos on Apr. 5, 2023.

Authorities elsewhere have charged these concerned with OneCoin and Ignatova, with three associates facing charges in Germany over fraud and cash laundering.