Crypto Exchange Pioneer Sentenced to 20 Years for Involvement in $4 Billion OneCoin Scam
Karl Sebastian Greenwood, a crypto exchange pioneer and marketer, has been sentenced to 20 years in prison for his part in the $4 billion OneCoin scam. Greenwood co-founded the fraudulent cryptocurrency scheme, which generated $4.3 billion in revenue and $2.93 billion in profits between 2014 and 2016. At the time, it was considered the largest criminal fraud involving cryptocurrency. Nearly 3.5 million people worldwide were impacted by the illicit scheme.
OneCoin: A Multilevel Marketing Scheme
OneCoin operated as a multilevel marketing scheme, rewarding commission to individuals for recruiting others to the scheme. Greenwood worked closely with Ruja Ignatova, known as the “Cryptoqueen,” who is currently on the FBI’s most-wanted criminal list. Despite promoting OneCoin as the next Bitcoin, Greenwood was the main promoter of the pyramid scheme.
Greenwood’s Gains and the Judge’s Verdict
Prosecutors claim Greenwood made as much as $300 million from the scam, which he used to buy properties, go on luxury trips, and make extravagant purchases. In court, United States District Judge Edgardo Ramos highlighted the scheme’s lack of blockchain, real cryptocurrency, and trading market, emphasizing that victims may never recover their investments. Ignatova, the “Cryptoqueen,” remains at large with a $100,000 bounty on her head.
Hot Take: Crypto Scams Highlight the Need for Investor Awareness
This case serves as a reminder of the risks associated with the cryptocurrency market. It underlines the importance of conducting thorough research and due diligence before investing in any scheme or project. Investors should be cautious of multilevel marketing schemes that promise high returns and use deceptive tactics to recruit new members. To protect yourself, ensure that any investment opportunity has a transparent blockchain, a real cryptocurrency, and an established trading market. Stay informed and skeptical to avoid falling victim to similar scams in the future.
By
By
By
By
By