20-Yr Jail Time period for OneCoin Co-Founder Karl Greenwood in Landmark Crypto Fraud Case
Karl Greenwood, the co-founder of notorious crypto rip-off OneCoin, has been sentenced to twenty years in jail by a New York choose.
US District Decide Edgardo Ramos, who presided over Greenwood’s sentencing, characterised the fraud within the OneCoin case as “huge in lots of respects” and likened it to “old school snake oil.”
OneCoin lacked a blockchain, and had no actual cryptocurrency or marketplace for buying and selling.
Moreover, victims who invested in OneCoin had been unable to withdraw their cash once more.
Greenwood, who based OneCoin along with Ruja Ignatova, actively promoted the phony cryptocurrency, falsely assuring victims that OneCoin would rival Bitcoin.
Greenwood pleaded responsible to the costs in opposition to him in December final 12 months.
Ruja Ignatova, generally known as “Cryptoqueen,” has by no means been arrested and her whereabouts are unknown, though one report has indicated she could have been killed by a drug lord in 2018.
The report in regards to the alleged homicide got here after a London penthouse believed to be owned by Ignatova was put up on the market for £11 million in January this 12 months.
Ignatova was final 12 months added to the FBI’s 10 Most Wished Fugitives listing.
Cash spent on private luxurious items
Based on prosecutors, Greenwood personally made $300 million from the scheme, which he spent on luxurious properties, journey, designer clothes, and different extravagances. He was ordered to forfeit $300 million.
Commenting on the sentencing, Damian Williams, US Legal professional for the Southern District of New York, mentioned that Greenwood operated one of many largest fraud schemes in recorded historical past.
“Greenwood and his co-conspirators, together with fugitive Ruja Ignatova, conned unsuspecting victims out of billions of {dollars} with guarantees of a ‘monetary revolution’ and claims that OneCoin could be the ‘Bitcoin killer,’” Williams mentioned, whereas noting that OneCoins had been in reality nugatory and traders had been left with nothing.
“We hope this prolonged sentence resonates within the monetary sector and deters anybody who could also be tempted to mislead traders and exploit the cryptocurrency ecosystem by way of fraud,” he added.
OneCoin was a crypto-based pyramid scheme that was promoted by way of a multi-level advertising and marketing (MLM) community.
The scheme took in effectively over $4 billion from greater than 3.5 million victims internationally between 2014 and 2016 alone.
