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In keeping with the U.S. Division of Justice (DOJ), Karl Sebastian Greenwood, co-founder of the notorious OneCoin cryptocurrency scheme, has been sentenced to twenty years in jail. The choice was handed down by U.S. District Decide Edgardo Ramos, following Greenwood’s involvement in a fraudulent operation that deceived tens of millions of buyers worldwide, resulting in losses exceeding $4 billion.
OneCoin: A Temporary Overview
Based in 2014, OneCoin Ltd., headquartered in Sofia, Bulgaria, was marketed as a revolutionary cryptocurrency. Nevertheless, it was later revealed to be a sham, with no actual worth. The corporate operated by means of a world multi-level-marketing (MLM) community, attractive tens of millions to speculate based mostly on false guarantees and misrepresentations.
The Scale of the Fraud
Between This fall 2014 and This fall 2016, OneCoin amassed over $4 billion from no less than 3.5 million victims. Greenwood, as the worldwide grasp distributor, was instrumental within the scheme’s success, incomes a staggering 5% of month-to-month OneCoin gross sales globally. This amounted to over $200 million in simply two years and totaled round $300 million general.
Deceptive Representations
Greenwood and his co-founder, Ruja Ignatova, generally known as “the Cryptoqueen,” strategically used Bitcoin’s status to lure buyers. They offered OneCoin as the following huge funding alternative, drawing parallels between the 2 cryptocurrencies of their advertising and marketing supplies. Nevertheless, in contrast to authentic cryptocurrencies, OneCoin’s worth was arbitrarily set by the corporate, with no regard for market dynamics.
The Phantasm of Legitimacy
OneCoin falsely claimed to function on a non-public “blockchain.” Nevertheless, it lacked a real, verifiable blockchain. By March 2015, Greenwood and Ignatova started allocating non-existent OneCoins to members, dubbing them “pretend cash.” This deception was additional highlighted in e mail exchanges between the co-founders, the place they acknowledged the absence of actual mining operations.
Lavish Existence Funded by Fraud
The funds amassed from the scheme had been used to finance extravagant life. Greenwood, for example, spent 1000’s on luxurious resorts in Brazil and Thailand, designer items, and even a non-public “OneCoin” airplane. He additionally invested in actual property throughout Spain, Dubai, and Thailand.
The Arrest and Extradition
Greenwood was apprehended in Koh Samui, Thailand, in July 2018 and was later extradited to the U.S. in October 2018. He has remained in custody since his arrest.
The Hunt for the Cryptoqueen
Ruja Ignatova, Greenwood’s co-conspirator, stays elusive. Charged with OneCoin-related fraud and cash laundering in October 2017, she vanished after a visit from Bulgaria to Greece later that month. Ignatova was added to the FBI’s High Ten Most Wished Listing in June 2022, with a $100,000 reward for info resulting in her seize.
Picture supply: Shutterstock
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