Sign Up on MEXCOneCoin Co-Founder Bags 20-Year Jail Term as CryptoQueen Remains a Fugitive
Crypto exchange pioneer and marketer, Karl Sebastian Greenwood has been sentenced to 20 years in prison for the part he played in the $4 billion OneCoin scam.
Greenwood Defrauds Investors in Crypto Scheme
Greenwood was the co-founder of the phony cryptocurrency scheme OneCoin which generated 4 billion euros ($4.3 billion) in revenue and 2.7 billion euros ($2.93 billion) in profits between 2014 and 2016.
When the scheme finally went sour, it was regarded as the first and biggest criminal fraud involving cryptocurrency in history at the time. Globally, almost 3.5 million people were impacted by the illicit scheme.
OneCoin operated as a multilevel marketing scheme that rewarded commission to people for recruiting others to the scheme. Greenwood worked together with Ruja Ignatova, the so-called “Cryptoqueen” who is now on the United States Federal Bureau of Investigation’s most wanted criminal list.
Both of them touted OneCoin as the next Bitcoin (BTC) in the crypto ecosystem but at the same time, Greenwood was the main promoter of the pyramid scheme.
Accrued Gains from OneCoin Scam
According to prosecutors, Greenwood made as much as $300 million from the scam. He used a significant part of this profit to purchase properties in Spain, Dubai and Thailand. Additionally, he went on a luxury trip in a private OneCoin jet, bought designer clothes and made a down payment on a Sunseeker yacht.
United States District Judge Edgardo Ramos stated that the fraud was massive in all respect. He highlighted some of the misgivings of the crypto scheme which gave it out as a red flag. First, he cited that OneCoin had no blockchain, no real cryptocoin and no trading market. In the entities, victims could not withdraw their investments and it is not likely that they would ever get their monies back.
“At base, it involved nothing more than old-fashioned snake oil,” Judge Ramos added.
On the other hand, Ignatova “CryptoQueen” is still at large but earlier this year, she was spotted in the heart of London. She is the only woman on the FBI’s most-wanted list at this time and has been added to the FBI’s list of the top 10 most-wanted fugitives. She has a $100,000 bounty reward on her head for anyone who can provide information on her current whereabouts.
- Bitcoin Will 200x From Here, Twenty One Capital CEO Says as BTC Breaks $117K After Fed Rate Cut
- BNB Chain Takes Lead in RWA Tokenization, Expert Sees BNB Rally to $1,300
- Grayscale’s GDLC Fund Holding SOL and ADA Gets SEC Nod for NYSE Debut
- Crypto Market Rally: Will Bitcoin Catch Up With S&P 500 Gains After Fed Rate Cut?
- Ripple Partners DBS, Franklin Templeton To Launch Trading And Lending Backed by RLUSD
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
