Key Points:
Karl Sebastian Greenwood, co-founder of OneCoin, has been sentenced to 20 years in prison for his role in the $4 billion cryptocurrency fraud scheme. OneCoin, marketed as a revolutionary cryptocurrency, defrauded 3.5 million investors worldwide, while Greenwood profited over $300 million. Ruja Ignatova, the other co-founder known as the Cryptoqueen, remains at large on the FBIs Most Wanted List, leaving victims seeking justice.
Karl Sebastian Greenwood, co-founder of the notorious cryptocurrency scam OneCoin, has been sentenced to 20 years in prison by U.S. District Judge Edgardo Ramos. The sentencing comes after Greenwood pleaded guilty to wire fraud and money laundering charges in connection with the fraud scheme.
OneCoin, which has operated since 2014 and was headquartered in Sofia, Bulgaria, was marketed as a cryptocurrency investment opportunity and amassed over $4 billion from approximately 3.5 million unsuspecting victims worldwide. Greenwood, along with co-founder Ruja Ignatova (known as the Cryptoqueen), orchestrated the scheme, promising investors a “financial revolution” and positioning OneCoin as a “Bitcoin killer.”
However, it was revealed that OneCoins were entirely worthless, leaving investors with significant losses, while Greenwood profited substantially, accumulating over $300 million from the scam. U.S. Attorney Damian Williams stated:
“As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated.”
Ruja Ignatova is still at large and remains on the FBIs Most Wanted List. The scheme she and Greenwood co-founded used a multi-level marketing structure to recruit members, similar to a pyramid scheme, and falsely claimed to have an independent exchange for trading OneCoins.
Despite Greenwood‘s sentencing, the pursuit of justice continues for the victims of this massive cryptocurrency fraud, with Ignatova’s whereabouts remaining a mystery. Unconfirmed rumors state that Christoforos Amanatidis, a notorious Bulgarian drug kingpin, ordered her death in 2018 on a yacht in the Ionian Sea.