Onecoin Scam Co-founder Karl Greenwood Gets 20-Year Prison Sentence
Karl Sebastian Greenwood, a co-founder of the infamous cryptocurrency Ponzi scheme Onecoin, has been handed a 20-year prison sentence in the United States. Greenwood, a British and Swedish national, played a pivotal role in orchestrating the fraudulent multi-level marketing (MLM) network and was the global distribution head of Onecoin.
Onecoin Scam Architect Convicted in USD 4 Billion Fraud Case
Karl Sebastian Greenwood, the co-founder of the notorious crypto Ponzi scheme Onecoin, has been convicted in the USD 4 billion fraud case and is likely to spend twenty years in prison. The US District Judge Edgardo Ramos delivered the sentence, which was announced on Tuesday by Damian Williams, the United States Attorney for the Southern District of New York. This landmark decision marks a substantial step toward justice in a case that has captivated the cryptocurrency world.
Greenwood co-founded Onecoin with Ruja Ignatova, a Bulgarian-born German national known as the "Cryptoqueen," in Sofia, Bulgaria, in 2014. Ruja has been missing since she was last seen on October 25, 2017, when she took a flight from Sofia to Athens. Onecoin largely promoted and marketed the fake coin by the same name through a global multi-level marketing (MLM) network.
Greenwood was the driving force behind the elaborate scheme that duped 3.5 million investors worldwide, amassing a staggering USD 4 billion between late 2014 and late 2016. Operating as the global distribution head of Onecoin, he spearheaded the global multi-level marketing (MLM) network, offering enticing commissions to members for recruiting new investors.
Onecoin members were given commissions for recruiting new investors to buy the crypto packages. Greenwood earned 5% of the monthly gross sales and reportedly accrued around USD 300 million. He has been ordered to forfeit the sum in addition to his lengthy prison term, as outlined in an official press release. Damian Williams, the US Attorney, issued a stern warning, stating:
"As a founder and leader of Onecoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars with promises of a ‘financial revolution' and claims that Onecoin would be the ‘Bitcoin killer.’"
The fraudulent nature of Onecoin became increasingly apparent as investigators uncovered that the cryptocurrency had no intrinsic value and its price was arbitrarily set by the scammers. Onecoin falsely claims to mine coins like legitimate cryptocurrencies and operate on a private blockchain.
Williams emphasized, "We hope this lengthy sentence resonates in the financial sector and deters anyone who may be tempted to lie to investors and exploit the cryptocurrency ecosystem through fraud."
Greenwood's journey through the justice system began with his arrest in July 2018 in Koh Samui, Thailand, followed by his extradition to the United States in October of the same year. In December 2022, he pleaded guilty to wire fraud and money laundering charges in Manhattan federal court.
"Cryptoqueen" Ruja Ignatova’s Whereabouts in Mystery
Meanwhile, the mastermind behind Onecoin, Ruja Ignatova, remains at large, wanted by Interpol, Europol, and the US Federal Bureau of Investigation (FBI). Ignatova's whereabouts have remained a mystery since her last sighting on October 25, 2017, when she departed from Sofia for Athens. There have been occasional media reports speculating about her fate, with one unsubstantiated claim suggesting her demise in Greece a year after her disappearance.
Konstantin Ignatova, Ruja's brother and a co-founder of Onecoin, faced justice in 2019 when he was arrested in Los Angeles, pleaded guilty to Onecoin-related charges, and sought witness protection in the United States. Additionally, Gilbert Armenta, the former boyfriend of the "Cryptoqueen," was sentenced in February 2023 to five years in prison for laundering USD 300 million of Onecoin proceeds.
The question that lingers is whether Onecoin's elusive co-founder, Ruja Ignatova, will ever face the consequences of her alleged involvement in this massive cryptocurrency fraud.
Do you think Onecoin’s other co-founder, Ruja Ignatova, will be brought to justice? Please share your thoughts and opinions in the comments section below.
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