Cryptocurrency

OneCoin co-founder pleads guilty on fraud, money laundering charges

Hull Invest

OneCoin founder Karl Sebastian Greenwood has been found guilty of multiple charges. statement From the U.S. Department of Justice, Dec. 16.

Greenwood pleaded guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit money laundering.

Each of these charges can carry a maximum penalty of 20 years in prison. Greenwood’s actual verdict will be determined by a judge in April 2023.

Greenwood has been in custody since being arrested in Thailand in July 2018. He was extradited to the United States to face prosecution in October 2018.

OneCoin started its operations in Bulgaria in 2014, functioning as a multi-level marketing scheme where members generate revenue by recruiting more investors. Despite attracting a large number of investors, OneCoin quickly gained notoriety and failed to pay out investors, earning it a reputation as a Ponzi scheme in 2016.

DOJ said today that the OneCoin scam has attracted more than $4 billion in investments from victims.

Federal Attorney Damien Williams called the project “one of the largest international fraud schemes ever undertaken.”

“The Greenwood lie was designed with one goal in mind: to get everyday people … to let go of their hard-earned money … and put hundreds of millions of dollars into their own pockets.”

OneCoin was co-founded by fugitive “Crypto Queen” Ruja Ignatova since an arrest warrant was issued in October 2017.

The DOJ’s announcement today explains that Greenwood and Ignatova deliberately misled investors by misrepresenting various aspects of OneCoin. During internal conversations, Ignatova even called her OneCoin a “crap coin” and suggested that she and Greenwood “take the money and run away.”

Greenwood and Ignatova aren’t the only people involved in the project that went to trial. OneCoin’s head of crisis management, Frank Schneider, was indicted earlier this month and is currently on trial.

Christopher Hamilton and Robert McDonald are also indicted for allegedly helping to launder money for the project. The latest development in these cases he occurred in August.

Posted In: Crime, Law, Fraud

Related Articles

Back to top button