Onecoin Founder’s Ex-Partner Sentenced to Five Years in Jail for Money Laundering $300 Million
Former boyfriend of the founder of cryptocurrency pyramid scheme Onecoin, Gilbert Armenta, has been sentenced in the United States for his role in laundering $300 million in proceeds from one of the largest Ponzi schemes in crypto history, according to Bloomberg Law.
Armenta, 59, had pleaded guilty in 2018 to charges of conspiring to commit wire fraud, money laundering, and extortion, all in connection with Onecoin. He had cooperated with prosecutors for two years, but later violated the agreement by committing other crimes. The ex-boyfriend of Onecoin’s founder has been sentenced to five years in prison for his role in the laundering of hundreds of millions of dollars from the infamous crypto Ponzi scheme.
Onecoin, which was founded in 2014, operated as a global multi-level-marketing network based on a cryptocurrency that never actually existed, despite being advertised as a “Bitcoin killer.” According to the company’s own documents, over three million people invested over $4 billion in Onecoin since 2016.
Ruja Ignatova, the Bulgarian-born German national and founder of Onecoin, disappeared in October 2017 and is wanted by Interpol, Europol, and the FBI. Her brother and co-founder, Konstantin, who was detained in Los Angeles in 2019, pleaded guilty to charges related to Onecoin and sought witness protection in the US. In December 2022, another co-founder, British and Swedish citizen Karl Sebastian Greenwood, also pleaded guilty to his part in the scam.
There have been periodic reports about Ignatova’s whereabouts and activities. Last July, the Greek daily Kathimerini reported that the Hellenic Police had attempted to locate and arrest her after intelligence indicated she was in the country and holding meetings with unidentified persons. Earlier this year, British media reported that a $15-million apartment bought by Ignatova had been offered for sale.
Meanwhile, prosecutors in the city of Bielefeld have accused a German lawyer who worked for Ignatova, Martin Breidenbach, of money laundering for the transfer of €20 million (over $21 million) for the purchase of the four-bedroom apartment. In October, he appeared in court, along with two Onecoin associates, to face charges of fraud and other crimes.
The case of Onecoin highlights the potential dangers of investment scams and the importance of due diligence before investing in any scheme. It also serves as a reminder that while the cryptocurrency industry can offer legitimate investment opportunities, it can also attract bad actors who seek to take advantage of investors.
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