Karl Sebastian Greenwood, co-founder of multi-billion greenback fraudulent cryptocurrency scheme OneCoin, has pleaded responsible to a number of fees introduced by the U.S. Division of Justice (DOJ) and faces as much as 60 years in jail. I am right here.
DOJ introduced on December 16 that Greenwood had filed a responsible plea in federal courtroom in Manhattan on fees of wire fraud, conspiracy to defraud, and conspiracy to launder cash.
Federal Lawyer Damian Williams stated Greenwood was operating “one of many largest worldwide fraud schemes ever dedicated,” although the tokens have been “utterly nugatory.” It claimed to have marketed OneCoin as a “bitcoin killer.”
OneCoin is a Bulgarian firm based by Greenwood with “Cryptoqueen” Ruja Ignatova, which offered a cryptocurrency of the identical title. Emails DOJ obtained between her two previous to his 2014 founding allege that the 2 known as it a “crap coin.”
On the floor, it claimed to be a multi-level advertising and marketing firm whose members earn commissions for promoting cryptocurrency packages that embrace OneCoin and extra mining energy. OneCoin might solely be exchanged for fiat forex on the non-public Xcoinx change.
In actuality, it was each a Pyramid and a Ponzi scheme, as traders might recruit others into the scheme with out an precise product, and later traders have been paid with cash from earlier traders.
In keeping with the DOJ, Greenwood earned about $21.2 million (€20 million) a month in his position as a “world grasp distributor” for fraudulent crypto firms. Greater than $4 billion is believed to have been swindled by his OneCoin from his 3 million individuals who invested within the bundle.
Ignatova was positioned on the Federal Bureau of Investigation’s prime 10 most wished checklist in June for her position within the scheme. She remains to be on the run and was final recognized to have traveled to Athens, Greece in October 2017.
Associated: inform if a cryptocurrency challenge is a Ponzi scheme
Williams stated Greenwood’s petition “sends a transparent message,” saying the Justice Division “is towards all who search to take advantage of the cryptocurrency ecosystem via fraud, regardless of how large or refined you might be.” We’re chasing folks,” he stated.
Greenwood is scheduled to be sentenced earlier than District Decide Edgardo Ramos on April 5, 2023.
Different authorities have prosecuted folks related to OneCoin and Ignatova, and three folks have been charged with fraud and cash laundering in Germany.
