Karl
Sebastian Greenwood, one of the Co-Founders of OneCoin, a fraudulent
cryptocurrency scheme, has been sentenced to 20 years in prison for his role in
orchestrating this massive fraud. He has been ordered to pay approximately $300
million in forfeiture.
OneCoin
was established in 2014 based in Sofia, Bulgaria. It operated as a
cryptocurrency but was, in reality, a fraudulent scheme. The scheme was
marketed and sold globally through a multi-level marketing (MLM) network. The participants
recruited others to purchase OneCoin cryptocurrency packages.
Greenwood
played a central role in OneCoin’s MLM network as its global master distributor
and leader. He earned substantial commission by recruiting new participants
and was instrumental in promoting and selling the fraudulent cryptocurrency. Between
the fourth quarter of 2014 and the fourth quarter of 2016, OneCoin amassed over
$4 billion from more than 3.5 million victims. The victims invested in OneCoin
cryptocurrency packages, believing they were making a legitimate investment.
Deceptive
Practices: How OneCoin Misled Investors
Greenwood
and other key figures in OneCoin deceived investors by comparing OneCoin to
legitimate cryptocurrencies like Bitcoin. They claimed
that OneCoin’s value was determined by market supply and demand. In reality, the
price was arbitrarily set by OneCoin without regard to market forces. OneCoin also lied about
the utility of…
