A co-founder of the fraudulent cryptocurrency OneCoin, a pyramid scheme that conned billions of {dollars} from buyers worldwide, pleaded responsible to wire fraud and cash laundering fees, U.S. prosecutors stated Friday.
Touted as a “Bitcoin killer,” prosecutors stated the purported cryptocurrency co-founded by Ruja Ignatova and Karl Sebastian Greenwood in 2014 in Bulgaria was really nugatory. Although marketed as a cryptocurrency, it was by no means mined utilizing computer systems and there was no public and verifiable blockchain. The worth of OneCoin was not set by provide and demand, however by its operators, they stated.
Greenwood, 45, was arrested at his island residence in Thailand in 2018 and extradited to the US. He pleaded responsible Friday in federal court in Manhattan.
Greenwood, a citizen of Sweden and the UK, has been detained since his arrest.
U.S. Legal professional Damian Williams stated Greenwood helped function one of many largest worldwide fraud schemes in historical past. His workplace stated victims invested greater than $4 billion.
“Greenwood’s lies had been designed with one purpose, to get on a regular basis individuals everywhere in the world to half with their hard-earned cash—actual cash—and to line his personal pockets to the tune of a whole bunch of tens of millions of {dollars},” Williams stated in an announcement.
Ignatova, nicknamed the Cryptoqueen and described as OneCoin’s high chief, disappeared in October 2017 and stays at massive. In June, she was added to the FBI’s Top Ten Most Wanted Record and there’s a $100,000 reward for data resulting in her arrest.
OneCoin’s progress was fueled by multilevel advertising, by which members obtained commissions for recruiting others to buy cryptocurrency packages.
Although Ignatova boasted that OneCoin can be “the Bitcoin killer,” she and Greenwood referred to it as “trashy coin” in e mail correspondence. In a single e mail, Greenwood referred to buyers as idiots.
Greenwood pleaded responsible to 1 depend of conspiracy to commit wire fraud, one depend of wire fraud and one depend of conspiracy to commit money laundering. Every depend carries a most sentence of 20 years in jail.
He will probably be sentenced April 5.
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Bogus ‘Bitcoin killer’ cryptocurrency founder pleads responsible (2022, December 17)
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