$4B OneCoin scam co-founder pleads guilty, faces 60 years jail

Karl Sebastian Greenwood, the co-founder of the multi-billion dollar fraudulent cryptocurrency strategy OneCoin has pleaded blameworthy to aggregate charges brought guardant by the United States Department of Justice (DOJ) and faces a maximum of 60 years successful prison.

The DOJ announced connected Dec. 16 that Greenwood submitted a blameworthy plea successful a Manhattan national tribunal to charges of ligament fraud, ligament fraud conspiracy and wealth laundering conspiracy with each complaint carrying a maximum imaginable condemnation of 20 years successful jail.

U.S. Attorney Damian Williams said Greenwood operated “one of the largest planetary fraud schemes ever perpetrated” and claimed helium touted OneCoin arsenic a “Bitcoin killer” erstwhile successful world the tokens were “entirely worthless.”

OneCoin was a Bulgarian institution founded by Greenwood alongside “Cryptoqueen” Ruja Ignatova that marketed a cryptocurrency by the aforesaid name. Emails obtained by the DOJ betwixt the 2 earlier its founding successful 2014 allege the brace called it a “trashy coin.”

Greenwood connected signifier successful Jun. 2016 astatine OneCoin’s “COIN RUSH” lawsuit successful London. Image: YouTube

Outwardly it claimed to beryllium a multi-level selling steadfast with members gaining commissions for selling cryptocurrency packages seemingly containing OneCoin and the quality to excavation more. OneCoin could lone beryllium exchanged for fiat currency connected the backstage Xcoinx exchange.

In reality, it was both a pyramid and a Ponzi scheme arsenic investors could enlistee others into the strategy without an existent merchandise and aboriginal investors were paid with the wealth from earlier investors.

According to the DOJ Greenwood was earning astir $21.2 cardinal (€20 million) per period successful his relation arsenic the “global maestro distributor” of the fraudulent crypto firm. Over $4 cardinal is believed to person been swindled by OneCoin from the 3 cardinal radical who invested successful the packages.

Ignatova was placed connected the Federal Bureau of Investigation’s top 10 astir wanted list successful June for her relation successful the scheme. She remains astatine ample and was past known to person traveled to Athens, Greece successful Oct. 2017.

Related: How to archer if a cryptocurrency task is simply a Ponzi scheme

Williams said Greenwood’s plea “sends a wide message” the DOJ is “coming aft each those who question to exploit the cryptocurrency ecosystem done fraud, nary substance however large oregon blase you are.”

Greenwood is slated to beryllium sentenced earlier District Judge Edgardo Ramos connected Apr. 5, 2023.

Authorities elsewhere person charged those progressive with OneCoin and Ignatova, with 3 associates facing charges successful Germany implicit fraud and wealth laundering.