Crypto news

OneCoin co-founder Greenwood sentenced to 20 years in US prison for fraud and money laundering.

On September 20, Karl Greenwood, the co-founder of OneCoin alongside Ruja Ignatova, received a 20-year prison sentence in the United States and was directed to pay $300 million.

Notably, Ignatova remains a fugitive.

Greenwood, who holds citizenship in the United Kingdom and Sweden,

was sentenced in the U.S. District Court for the Southern District of New York.

The Justice Department released a statement where U.S. Attorney Damian Williams described OneCoin as “one of the largest fraud schemes ever perpetrated.”

This multilevel marketing and Ponzi scheme managed to amass $4 billion from approximately 3.5 million victims.

adding:

“In reality, unlike legitimate cryptocurrencies, OneCoin had no actual value.”

During their sales pitches, the OneCoin team made comparisons between their product and Bitcoin.

However, according to the Justice Department, OneCoin lacked a genuine blockchain,

meaning it did not possess a public and verifiable blockchain.

Additionally, the company had no mining operations and sold more coins on its private blockchain than it actually possessed.

This revelation raises further doubts about the legitimacy of OneCoin’s claims.

Greenwood, who has been held in custody since 2018 following his extradition from Thailand,

pleaded guilty to fraud and money laundering charges in December.

While he could have faced a maximum sentence of 60 years, he has now been sentenced to 20 years.

Notably, Greenwood amassed more than $300 million through a 5% commission on all OneCoin sales, indulging in a lavish lifestyle and luxury goods.

In contrast, Ignatova, who has been missing since October 2017, is currently on the Federal Bureau of Investigation’s Ten Most Wanted List.

However, the pursuit of justice continues for other executives involved with OneCoin.

OneCoin’s former head of legal and compliance, Irina Dilkinska, faced charges in the United States in March, including wire fraud and conspiracy to commit money laundering.

Additionally, Christopher Hamilton, an associate of Ignatova, was reportedly scheduled for extradition to the U.S. in August 2022, facing charges of fraud and money laundering.

The legal proceedings against these individuals demonstrate ongoing efforts to hold accountable those involved with the OneCoin scheme.

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