20-Year Prison Term for OneCoin Co-Founder Karl Greenwood in a Crypto Fraud Case

Karl Greenwood, co-founder of the infamous OneCoin cryptocurrency pyramid scheme, has been sentenced to 20 years in prison in a crypto fraud case. 

The sentencing took place in the U.S. District Court for the Southern District of New York on September 20. 

In addition to his prison term, Greenwood has been ordered to pay back $300 million, representing the commissions he earned from the fraudulent scheme.

U.S. Attorney Damian Williams referred to OneCoin as:

“one of the largest fraud schemes ever perpetrated.” 

The scheme, founded by Greenwood and Ruja Ignatova, falsely portrayed itself as a cryptocurrency with real value. 

However, in reality, it lacked a genuine blockchain and did not engage in mining operations. 

OneCoin managed to defraud approximately $4 billion from over 3.5 million victims.

Unlike legitimate cryptocurrencies like Bitcoin, OneCoin had no verifiable blockchain, and it didn’t even possess as many coins on its private blockchain as it claimed to have sold. 

This deception was central to the massive fraud that ensnared millions of investors.

Karl Greenwood played a significant role in the OneCoin scam as its “global master distributor and the leader of the MLM (multi-level marketing) network through which the fraudulent cryptocurrency was marketed and sold.” 

For his efforts, Greenwood received a 5% commission on all OneCoin sales, accumulating more than $300 million in earnings. He lived extravagantly, indulging in luxury goods and a lavish lifestyle.

Legal Proceedings and Extradition

Greenwood’s legal troubles began when he was arrested in Thailand in 2018. He was subsequently extradited to the United States. 

In December 2022, he pleaded guilty to charges of fraud and money laundering, which could have carried a maximum sentence of 60 years.

However, Greenwood’s imprisonment began well before the recent sentencing. He has been in custody since 2018, awaiting trial. 

During this period, he had access to most of the electronically stored discovery materials. 

His bail was revoked due to concerns related to witness tampering, and he has been detained ever since.

Ruja Ignatova, co-founder of OneCoin and often referred to as the “CryptoQueen,” remains at large and is on the FBI’s Ten Most Wanted List. Although she has not been seen since October 2017, efforts are ongoing to bring her to justice.

In 2014, a woman named Ruja Ignatova launched a fake cryptocurrency named "OneCoin". Despite the currency never existing, Ruja convinced people all over the world to invest. In 2017, after raking in $4 billion profit, she boarded a plane to Greece and hasn't been seen since. pic.twitter.com/DoJCfmy0Uj

— High Paying Faucets (@brainburster_in) March 15, 2023

Several other individuals associated with OneCoin, including Irina Dilkinska and Christopher Hamilton, are facing charges of wire fraud and money laundering in the United States.