Karl Sebastian Greenwood, the founder of the cryptocurrency ponzi scheme OneCoin, appeared in court today. 46-year-old Greenwood was sentenced to prison by a New York court. Here are the details…
The sentence of the founder of the giant cryptocurrency ponzi scheme OneCoin has been announced
According to details, Greenwood, 46, was sentenced to 20 years in prison on Wednesday in New York. He was also ordered to repay $300 million he obtained from fraud.
Greenwood was one of the founders of the OneCoin project, which emerged in 2014. The project was promoted as a legitimate investment opportunity, but was quickly exposed as a fraud scheme. OneCoin was a classic Ponzi scheme based on the principle of paying the money collected from new investors to old investors. As the pyramid scheme grew, the system collapsed as new customers did not begin to arrive.
As reported by Kriptokoin.com, fraudster Greenwood was arrested in Thailand in 2018. Another important name related to Ponzi and the other founder of OneCoin, Ruja Ignatova, has not been seen since 2017. Ignatova is currently on the FBI’s most wanted list. She is known as one of the most wanted crypto fugitives in the world.
This massive fraud scheme victimized more than 3.5 million people and resulted in a fraud of approximately $4 billion. The scheme defrauded the masses by exploiting many people’s interest in cryptocurrencies at a time when cryptocurrencies were on the rise.
The court decided on a heavy prison sentence
The court made its decision today after Greenwood confessed his crime. Greenwood pleaded guilty last December to creating and promoting a counterfeit cryptocurrency. Greenwood is also known as Ruja Ignatova’s right-hand man. The duo formed a team that followed in the footsteps of Ignatova, who has an important place in the cryptocurrency world and is known as “Cryptoqueen”.
The court ordered Greenwood to repay the $300 million he earned from the OneCoin project. This has been recorded as one of the largest fraud penalties we have ever seen in the cryptocurrency world.
This latest decision in the OneCoin case represents an important step taken by the judiciary. Greenwood was sentenced to 20 years in prison, according to a press release issued by the U.S. Department of Justice. He will also have to pay a $300 million fine. This fine will offset some of the proceeds Greenwood made from the fraud scheme.
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