OneCoin Co-Founder Karl Greenwood Sentenced to 20 Years in Prison and $300 Million Fine
In a significant development in the ongoing saga of the infamous cryptocurrency scam OneCoin, co-founder Karl Greenwood has been sentenced to 20 years in prison and ordered to pay a staggering $300 million by the U.S. District Court for the Southern District of New York. This verdict marks a crucial step towards justice in what the U.S. Department of Justice has dubbed “one of the largest fraud schemes ever perpetrated.”
Karl Greenwood, hailing from the United Kingdom and Sweden, stood before the court on September 20, as U.S. Attorney Damian Williams delivered the verdict. The charges brought against Greenwood included fraud and money laundering, stemming from his deep involvement in the creation and operation of the fraudulent cryptocurrency, OneCoin. Greenwood’s sentencing comes after his guilty plea in December, a move that likely reduced his potential sentence from a maximum of 60 years.
OneCoin, founded by Greenwood and Ruja Ignatova, falsely positioned itself as a legitimate cryptocurrency, frequently comparing its product to the well-established Bitcoin in its sales pitches. However, the reality was far from the claims made by the OneCoin team. According to the U.S. Justice Department’s statement, OneCoin had no actual value, lacked a genuine blockchain, and failed to conduct any mining operations. Moreover, it did not possess as many coins on its private blockchain as it had sold.
The scale of the deception is staggering. OneCoin reportedly raked in a colossal $4 billion from over 3.5 million unsuspecting victims who were lured into the multilevel marketing and Ponzi scheme. This sentence for Karl Greenwood sends a clear message that individuals involved in such fraudulent schemes will face severe consequences for their actions.
What is even more alarming is the continued absence of Ruja Ignatova, the co-founder of OneCoin. Ignatova has not been seen since October 2017 and is currently on the Federal Bureau of Investigation’s Ten Most Wanted List. Her whereabouts remain a mystery, and her evasion of authorities raises questions about the lengths to which she may go to avoid facing justice.
While Ruja Ignatova remains at large, several other key figures within the OneCoin organization are being pursued by law enforcement. This includes individuals who played pivotal roles in the operation of the fraudulent cryptocurrency and contributed to its massive illicit gains.
Karl Greenwood’s sentencing underscores the commitment of law enforcement agencies to hold those responsible for fraudulent schemes accountable for their actions. The massive financial penalty serves as a stark reminder that cryptocurrency scams will not go unpunished, and those who engage in such deceitful activities will face the full force of the law.
As the story of OneCoin continues to unravel, the pursuit of Ruja Ignatova and the prosecution of her associates remain at the forefront of the global effort to dismantle one of the largest cryptocurrency frauds in history.
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