Co-Founder of OneCoin Crypto Scheme Sentenced to 20 Years in Prison
The U.S. District Court for the Southern District of New York has handed down a 20-year prison sentence to Sebastian Karl Greenwood, one of the co-founders of the fraudulent OneCoin cryptocurrency scheme. Greenwood and his absent co-founder, Ruja Ignatova, were charged by the Department of Justice (DOJ) for orchestrating a massive fraud scheme that involved marketing and selling the dubious OneCoin cryptocurrency through a global multi-level marketing (MLM) network.
The Multibillion-Dollar Scam
In December 2022, Greenwood pleaded guilty to the wire fraud and money laundering charges brought against him by the DOJ. According to Damian Williams, the U.S. Attorney for the Southern District of New York, Greenwood created an elaborate MLM structure for OneCoin, where he served as the master distributor and leader of the network. The scheme defrauded over $4 billion from approximately 3.5 million victims between late 2014 and late 2016.
The Flashy Swindle
The prosecution revealed that Greenwood used the proceeds from the scam to buy luxury items such as watches, footwear, and designer clothes worth around $2 million. He also traveled the world using a private OneCoin jet and made a down payment of £475,000 for a Sunseeker yacht.
Hot Take: Justice Served for OneCoin Co-Founder
The sentencing of Sebastian Karl Greenwood to 20 years in prison sends a strong message to those who attempt to deceive and exploit investors through fraudulent cryptocurrency schemes. The OneCoin scam, orchestrated by Greenwood and his co-founder, caused significant financial harm to millions of victims worldwide. It is essential that such individuals face severe consequences for their actions to deter others from engaging in similar fraudulent activities. The conviction and sentencing of Greenwood highlight the commitment of law enforcement agencies to protect the integrity of the cryptocurrency ecosystem and hold perpetrators accountable for their crimes.
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