In April 2023, the co-founder of the fraudulent plan will be sentenced on charges of wire fraud and money laundering.
The co-founder of the multi-billion dollar fraudulent cryptocurrency scam OneCoin, Karl Sebastian Greenwood, has admitted guilt to many counts brought by the U.S. Department of Justice (DOJ) (1) and now faces up to 60 years in jail. The Department of Justice reported on December 16 that Greenwood entered a guilty plea to counts of wire fraud, conspiracy to commit wire fraud, and conspiracy to launder money, each of which carries a maximum possible sentence of 20 years in prison.
Damian Williams, the U.S. Attorney, claimed that Greenwood ran "one of the biggest worldwide When OneCoin tokens were "totally worthless," he allegedly marketed them as one of the "worst fraud schemes ever perpetrated" and called them a "Bitcoin killer." Greenwood and the "Cryptoqueen," Ruja Ignatova, formed OneCoin (2), a business in Bulgaria that promoted a cryptocurrency by the same name. Before the company was founded in 2014, emails between the two allegedly referenced it as a "trashy currency."
How the scam worked
It presented itself as a multi-level marketing company, with members earning rewards for selling cryptocurrency bundles that purportedly included OneCoin and the opportunity to mine more coins. Only on the exclusive Xcoinx exchange may OneCoin be converted into fiat money. In truth, the scam was both a pyramid and a Ponzi since investors could bring in new participants without providing a tangible good or service; the money from early investors was used to pay subsequent investors. As the "global master distributor" of the fake crypto company, Greenwood reportedly made over $21.2 million (€20 million) every month. Three million customers who bought the packages and invested over $4 billion are thought to have been duped by OneCoin.
Due to her involvement in the conspiracy, Ignatova was added to the FBI's top ten most wanted list in June (3). She is still at large and was last seen leaving for Athens, Greece, in October 2017. Williams said Greenwood's plea "sends a strong message" that the DOJ will pursue anybody who attempts to defraud the bitcoin ecosystem, regardless of how large the deception. Whether you are sophisticated. On April 5, 2023, Greenwood is scheduled to receive his punishment before District Judge Edgardo Ramos. Three colleagues are accused of fraud and money laundering in Germany, while other authorities have filed accusations against persons connected to OneCoin and Ignatova.