The co-founder of the multi-billion dollar crypto Ponzi scheme “OneCoin” will face the punishment of up to 60 years behind bars.
Karl Sebastian Greenwood is a co-founder of OneCoin. This coin was nothing but a shitcoin without any real use case. Greenwood promoted this coin as a Bitcoin killer & also introduced it as a use case in the Multi Level Marketing (MLM) scheme, where every person was getting a huge amount of Commission to sell the package of cryptocurrencies.
“Cryptoqueen” Ruja Ignatova marketed a cryptocurrency by the same name. Indeed Ruja & Greenwood were in connection to work on the OneCoin scam.
On 16 Dec, the United States Department of Justice (DOJ) announced that Greenwood submitted a guilty plea in Manhattan federal court to a conspiracy of wire fraud & money laundering against him.
In a total of three charges, Greenwood will face a maximum of 60 years in Jail.
Damian Williams, a US attorney, said that Greenwood is one of the biggest scammers in the world where he operated OneCoin as a Bitcoin killer but in reality, that coin was useless.
Investigations noted that the whole thing was a part of money rotation where early investors were getting earnings because of the new member’s investment.
Reportedly, Greenwood was earning €20 million ($21.1M) per month and it was believed that $4 billion had been swindled by OneCoin from the three million people who invested in the packages.
OneCoin’s MLM Package included some crypto assets including OneCoin and also people who were purchasing packages were getting some more of OneCoin via mine, which was not more than a Ponzi scheme outside the decentralised crypto mining operations.
CryptoQueen Ruja was in the top 10 of the list of most wanted scammers in June, as she was one of the key contributors to the OneCoin Ponzi scheme. After 2017, no one knows about her location.
On 5 April 2023, District Judge Edgardo Ramos will give final judgement on Greenwood’s OneCoin Ponzi scheme.