In a major blow to the world of cryptocurrency, Karl Sebastian Greenwood, co-founder of OneCoin and known accomplice of the infamous “Cryptoqueen” Ruja Ignatova, has been sentenced to 20 years in prison. The sentencing comes as a result of their involvement in one of the biggest crypto scam projects in history. Ignatova, who was included in the Federal Bureau of Investigations (FBI) Ten Most Wanted Fugitives list, is rumored to have met a gruesome fate in 2018. In a recent development, Swedish citizen Karl Sebastian Greenwood was handed down his sentence on Tuesday, September 11, in New York, marking the culmination of a long legal battle.
A Master Puppeteer
Greenwood, the mastermind behind the OneCoin project, played a pivotal role in its promotion and execution. Prosecutors alleged that he personally profited a staggering $300 million from the Ponzi scheme, using the ill-gotten gains to indulge in a life of luxury. Designer clothes, a down payment on a Sunseeker yacht, properties in Thailand, Spain, and Dubai were just some of the extravagant purchases Greenwood made with the money. Not content with a lavish lifestyle alone, he even embarked on luxury trips using a private OneCoin jet.
An Arrest and Extradition
Greenwood’s spree came to an abrupt end when he was arrested in Thailand in 2018 and subsequently extradited to the United States. Faced with the prospect of up to 60 years behind bars for his role in the tremendous fraud, Greenwood pleaded for leniency and admitted to knowingly promoting OneCoin as a means to defraud unsuspecting victims. In a December 2022 court hearing, he expressed remorse for his actions and detailed the harsh conditions he allegedly endured during his detention in Thailand and the US.
OneCoin: A Global Swindle
Founded by Ruja Ignatova, also known as the “Cryptoqueen,” the Bulgaria-based OneCoin project managed to swindle over $4 billion from investors worldwide. Ignatova and her accomplices cleverly marketed OneCoin as a formidable contender to Bitcoin, skillfully enticing people to invest in their fraudulent cryptocurrency. The web of deceit created by Ignatova extended beyond Greenwood, with another OneCoin executive, Irina Dilkinska, occupying a prominent position within the organization as the head of legal and compliance. Dilkinska now faces charges in the United States and could potentially be handed a maximum of 40 years in prison for wire fraud and alleged violations of money laundering laws.
Greenwood and Dilkinska aren’t the only ones paying the price for their involvement in the OneCoin scam. Ignatova’s ex-boyfriend, Gilbert Armenta, was sentenced to five years in prison in February 2023 for actively promoting OneCoin. Armenta played a crucial role in laundering $300 million from the proceeds of the fraudulent scheme, reportedly using the illicit funds to purchase a private jet and other extravagant items. While these individuals languish in prison, Ignatova, the mastermind behind it all, remains at large.
Despite her co-conspirators facing justice, Ignatova herself has managed to evade capture. Previous reports suggest that she was last seen in Athens, Greece, in 2017, leading to speculations that she is hiding aboard a yacht in the Mediterranean Sea. Bulgarian sources even alleged that Ignatova may have met a grisly end in 2018 on the orders of a local drug lord. In a significant development, Ignatova was added to the FBI’s Ten Most Wanted Fugitives list in June 2022, with authorities offering a substantial $100,000 reward for information leading to her arrest.
A Cautionary Tale
The unraveling of the OneCoin scam stands as a cautionary tale for investors and regulators across the globe. It serves as a stark reminder of the dangers that lie within the cryptocurrency industry, where unscrupulous individuals can exploit trust and greed for personal gain. As law enforcement agencies continue their pursuit of Ruja Ignatova and the others involved in this vast criminal enterprise, the case of OneCoin stands as a grave warning to those tempted by promises of quick riches in the ever-evolving world of cryptocurrencies.