Karl Sebastian Greenwood, A Co-Founder Of OneCoin, Has Admitted Guilt To Charges Of Fraud
An official statement released on December 16 by the Justice Department (DoJ) revealed how Greenwood used his position to plot the biggest international fraud scheme ever known.
Talking about the recent development, a United States attorney, Damian Williams, revealed that OneCoin is worthless and the firm has no practicable use case. He stated further that the OneCoin company was established with the primary purpose of defrauding investors.
The Department of Justice said that Greenwood earns around €20 million monthly and is the highest-paid MLM OneCoin distributor. Although a verdict has not been reached, the charges carry a maximum sentence of 20 years.
Nevertheless, the DoJ will deliver its verdict by April 5, 2023. Greenwood was arrested in Thailand in July 2018 and was extradited to the United States three months later.
The Supposed BTC Killer
OneCoin began operations in Bulgaria as a multi-level marketing scheme in 2014. Users earn specified amounts for bringing others onto the platform, similar to a normal pyramid scheme.
However, the Ponzi scheme started to fail two years after the business started having problems paying investors. The DoJ records state that the platform made over €4 billion in revenue and nearly €2.8 billion in investor profits.
Meanwhile, no one knows the whereabouts of the other co-founders, especially Ruja Ignatova, popularly known as Crypto Queen. In May, the European Union Agency for Law Enforcement Cooperation added Ignatova to its list of most-wanted criminals.
The agency also announced a reward of €5,000 for anyone who provides information that can lead to her arrest. In addition, Europol accused Ruja of deceiving investors by investing in ‘useless’ cryptocurrencies.
Following the Europol’s bounty, the US FBI added her to its Ten Most Wanted Fugitives list a month later. The FBI’s reward for information leading to her arrest was $100K.
Despite the concerted efforts of these law enforcement agencies, Ruja’s whereabouts have been untraceable for the past five years. Moreover, some news outlets claim that Ignatova may have switched her gender in an extreme move to evade arrest.
As a result, law enforcement agencies may never locate or apprehend her.
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