Karl Sebastian Greenwood, one of the co-founders of OneCoin, has received a 20-year prison sentence in the United States. This British and Swedish national played a crucial part in the establishment and functioning of OneCoin, a cryptocurrency scam infamous for its widespread deception of countless victims globally.
The sentencing was delivered by United States District Judge Edgardo Ramos, as revealed by Damian Williams, the United States Attorney for the Southern District of New York.
Karl Sebastian Greenwood, the mastermind behind Onecoin’s notorious multi-level marketing scheme, also held the position of global master distributor for this scam.
Onecoin, established in 2014 with its headquarters in Sofia, Bulgaria, managed to convince individuals to invest over $4 billion between the fourth quarter of 2014 and the fourth quarter of 2016. Greenwood partnered with Ruja Ignatova, a German citizen born in Bulgaria who is currently on the run.
Onecoin conducted its business by promoting and selling a counterfeit cryptocurrency under the same name through an extensive global network of multi-level marketing.
People were enticed to purchase crypto packages, and members received compensation for recruiting new investors. Greenwood allegedly received 5% of the monthly sales, totaling approximately $300 million.
Alongside serving his prison sentence, he is required to relinquish the ill-gotten gains obtained through unlawful activities.
The biggest lie Onecoin told was that the cryptocurrencies were mined, like real cryptocurrencies, and that their transactions were recorded on a private blockchain.
This false story, along with aggressive marketing, led about 3.5 million people around the world, including some in the United States, to fall for the scam.
In July 2018, Karl Greenwood was arrested at his home on the Thai island of Koh Samui. This marked a significant turning point in the pursuit of justice. In October of the same year, he was extradited back to the U.S., where he faced charges of fraud and money laundering.
Meanwhile, Ruja Ignatova, the mastermind behind Onecoin, remains at large. Interpol, Europol, and the Federal Bureau of Investigation (FBI) are all actively pursuing her capture.
The case against Onecoin and its key operators exemplifies the collaborative efforts of law enforcement agencies worldwide to hold cryptocurrency fraudsters accountable.
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