OneCoin co-founder Karl Sebastian Greenwood receives 20-year prison sentence

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OneCoin co-founder Karl Sebastian Greenwood has been sentenced to 20 years in prison. Greenwood played a major role in the cryptocurrency scam that defrauded investors out of billions of dollars. This news comes as a major development in the ongoing legal battle against OneCoin, which has been deemed one of the world’s largest cryptocurrency Ponzi schemes. Read more to find out about the sentencing and the implications for the future of cryptocurrency scams.

OneCoin Co-Founder Sentenced to 20 Years in Prison

Karl Sebastian Greenwood, one of the co-founders of the notorious cryptocurrency scheme OneCoin, has been handed a 20-year prison sentence. The sentencing comes after Greenwood was found guilty of his involvement in the multi-billion dollar fraud scheme.

Greenwood’s Role in OneCoin

Working closely with the fugitive Ruja Ignatova, also known as “Cryptoqeen,” Greenwood played a pivotal role in the development and promotion of OneCoin. He was responsible for creating OneCoin’s multi-level marketing (MLM) structure and acted as the global master distributor and leader for the scheme.

Greenwood’s involvement in the fraudulent scheme was highly lucrative. Through commissions, he earned 5% of monthly OneCoin sales, amassing a personal fortune of $300 million. He indulged in a lavish lifestyle, purchasing personal items, luxury resorts, and traveling extensively.

Oftentimes, Greenwood and Ignatova compared OneCoin to Bitcoin, despite the fraudulent nature of their own cryptocurrency. They falsely claimed that OneCoin’s value was determined by supply and demand when, in reality, its value was arbitrarily set by the OneCoin team.

Furthermore, Greenwood misled investors by fabricating mining pools and blockchains, which were non-existent. Authorities discovered private messages that revealed Greenwood and Ignatova’s acknowledgment of allocating “fake coins” to investors.

Legal Consequences

Greenwood’s arrest took place in Thailand in July 2018, followed by his extradition to the United States in October of the same year. In December 2022, he was convicted on various charges related to fraud and money laundering.

As part of his sentencing, Greenwood will serve a 20-year prison term and forfeit $300 million. This sentence serves as a stern warning to those involved in fraudulent cryptocurrency schemes and highlights the continued efforts of law enforcement agencies to bring the perpetrators to justice.

Other OneCoin Associates in Legal Trouble

Ruja Ignatova, the central figure behind OneCoin, has been charged since 2017 but remains at large. She is now listed on both the FBI’s Top Ten Most Wanted List and the European wanted list. Recent reports suggesting Ignatova’s murder in 2018 have not been verified by law enforcement agencies.

Another member of the OneCoin scheme, Frank Schneider, was due to face trial in December 2022. However, recent reports now indicate that he has disappeared before being extradited to the United States.

Several other participants in the OneCoin scheme are currently facing legal consequences. Irina Dilkinska was charged in March 2023, while Christopher Hamilton is fighting an extradition order after facing charges in late 2022. Mark Scott has already been convicted in 2019.

The sentencing of Karl Sebastian Greenwood serves as a significant milestone in the prosecution of individuals involved in the infamous OneCoin cryptocurrency scheme. It underscores the commitment of law enforcement agencies to ensure the integrity of the cryptocurrency space and protect investors from fraudulent activities.

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