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This article explores the fraudulent cryptocurrency scheme known as OneCoin, focusing on the role of co-founder Karl Sebastian Greenwood.

One of the co-founders of the fraudulent cryptocurrency scheme OneCoin, Karl Sebastian Greenwood, received a 20-year prison term for his part in directing this significant fraud. He must surrender about $300 million, according to the court decision.

Role of Greenwood in OneCoin’s Co-Foundership

In 2014, OneCoin was founded in Sofia, Bulgaria. It functioned as a cryptocurrency, but it was really a scam. A multi-level marketing (MLM) network was used to advertise and sell the plan on a global scale. Participants solicited friends and family to buy OneCoin cryptocurrency packages.

As the global master distributor and head of OneCoin, Greenwood played a crucial part in the MLM network. By bringing in new members, he made a significant commission and played a crucial role in promoting and disseminating the fake cryptocurrency. In the four years between the fourth quarters of 2014 and 2016, OneCoin collected nearly $4 billion from over 3.5 million victims. The victims thought they were investing wisely when they bought OneCoin cryptocurrency packages.

OneCoin’s Trickery: How It Misled Investors

Investors were duped by Greenwood and other influential OneCoin individuals who compared OneCoin to respectable cryptocurrencies like Bitcoin. They asserted that market supply and demand influenced the price of OneCoin. In actuality, OneCoin arbitrarily determined the price without taking into account market factors. OneCoin allegedly misrepresented the function of its tokens and said they could be used for OneCoin mining.

Crypto fraud

An “private blockchain” was touted by OneCoin

“. It lacked a transparent and verifiable blockchain, though. By March 2015, OneCoins that didn’t even exist in OneCoin’s alleged private blockchain were sent to members as “fake coins” by Greenwood and Ruja Ignatova, a co-founder of the cryptocurrency who, according to the source, is known as the “Cryptoqueen.”

In the course of the plan, Greenwood made nearly $300 million, which he then spent on a lavish lifestyle. He spent millions on a yacht, expensive designer goods, and real estate in many nations. He even flew across the globe in a personal aircraft marked “OneCoin.”

The disappearance of Ignatova and the FBI’s Most Wanted List

Greenwood was detained in Thailand’s Koh Samui in July 2018 and extradited to the US in October of the same year. Since his arrest, he has been kept in custody. Ignatova fled after being discovered in October 2017. In June 2022, she was added to the FBI’s list of the ten most wanted people.

Ignatova was allegedly slain in Greece in 2018 according to an earlier accusation. There isn’t any evidence for that, though. The BBC has learned that someone discreetly bought a lavish four-bedroom penthouse. Designer apparel and pricey artwork were everywhere. This information was just made public, although financial watchdogs in at least one European nation had already issued alerts over her dubious bitcoin plan.

Due to the fact that millions of investors were duped by the OneCoin scam, this case serves as a stark reminder of the seriousness and worldwide reach of cryptocurrency-related fraud. While one of the co-founders has been apprehended, the other is still at large, and the FBI is offering a sizable reward for information that will result in her capture.

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