Onecoin Co-founder Karl Sebastian Greenwood Sentenced to 20 Years in Prison

One of the founders of the crypto pyramid Onecoin, British and Swedish nationalist Karl Greenwood, has been sentenced to 20 years successful situation successful the United States. Greenwood was the designer of the scam’s multi-level selling operation and served arsenic Onecoin’s planetary maestro distributor.

Cryptoqueen Ruja Ignatova’s Business Partner Gets Lengthy Sentence for Onecoin Role

Karl Sebastian Greenwood, 1 of the cardinal figures successful crypto history’s astir notorious Ponzi scheme, Onecoin, is going to walk 2 decades successful prison. The sentence, imposed by U.S. District Judge Edgardo Ramos, was announced connected Tuesday by United States Attorney for the Southern District of New York, Damian Williams.

Greenwood co-founded Onecoin, which was based successful Sofia, Bulgaria and started operations successful 2014, unneurotic with Ruja Ignatova, a Bulgarian-born German nationalist dubbed the “missing Cryptoqueen” arsenic she is inactive astatine large. Onecoin marketed and sold a fake cryptocurrency by the aforesaid sanction done a planetary multi-level selling (MLM) network.

Ruja Ignatova and Karl GreenwoodAs a effect of their activities and misrepresentations, astatine slightest 3.5 cardinal victims astir the world, including from the U.S., invested $4 cardinal successful the scam betwixt the 4th fourth of 2014 and the 4th fourth of 2016 alone. Greenwood was Onecoin’s planetary maestro distributor and the person of the MLM network.

Onecoin members received commissions for recruiting others to bargain crypto packages. Greenwood, a national of Sweden and the United Kingdom, earned 5% of the monthly sales, allegedly making astir $300 cardinal which helium was ordered to wage successful forfeiture successful summation to the situation term, a press released detailed. U.S. Attorney Damian Williams was quoted arsenic stating:

As a laminitis and person of Onecoin, Karl Sebastian Greenwood operated 1 of the largest fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims retired of billions of dollars with promises of a ‘financial revolution’ and claims that Onecoin would beryllium the ‘Bitcoin killer.’

In reality, the coins issued by the crypto pyramid were worthless and their worth was acceptable by the fraudsters. Onecoin falsely claimed that they were mined similar morganatic cryptocurrencies and that their transactions were recorded connected a backstage blockchain. “We anticipation this lengthy condemnation resonates successful the fiscal assemblage and deters anyone who whitethorn beryllium tempted to prevarication to investors and exploit the cryptocurrency ecosystem done fraud,” Williams added.

Sebastian Greenwood was arrested successful July 2018, astatine his residence connected the land of Koh Samui, Thailand. He was extradited to the United States to look fraud and wealth laundering charges successful October, of the aforesaid year. In December 2022, helium pleaded guilty to ligament fraud and wealth laundering charges successful Manhattan national court.

Onecoin’s mastermind, Ruja Ignatova, is inactive wanted by Interpol, Europol, and the U.S. Federal Bureau of Investigation (FBI). She was past seen connected Oct. 25, 2017, erstwhile she took a formation from Sofia to the Greek capital, Athens. Media reports person occasionally released accusation based connected assorted sources astir her suspected whereabouts. And according to 1 of them, she was killed successful Greece, a twelvemonth aft her disappearance.

Konstantin Ignatov, Ruja’s member and besides a co-founder, was arrested successful Los Angeles successful 2019, pleaded blameworthy to Onecoin-related charges, and sought witnesser extortion successful the United States. The Cryptoqueen’s erstwhile boyfriend, Gilbert Armenta, was sentenced successful February 2023 to 5 years successful situation for laundering $300 cardinal of Onecoin proceeds.

Do you deliberation Onecoin’s different co-founder, Ruja Ignatova, volition beryllium brought to justice? Tell america successful the comments conception below.