Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” was sentenced to 20 years in prison for his orchestration of the massive OneCoin fraud scheme.
OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network.
As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, millions of victims invested over $4 billion worldwide in the fraudulent cryptocurrency.
Today’s sentence was imposed by U.S. District Judge Edgardo Ramos. IGNATOVA, who was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022, remains at large.
U.S. Attorney Damian Williams said:
“As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated. Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars with promises of a ‘financial revolution’ and claims that OneCoin would be the ‘Bitcoin killer.’
In fact, OneCoins were entirely worthless, and investors were left with nothing, while Greenwood lined his own pockets with over $300 million.
Tag Archive for Prison
Hot Business News Today
Crypto Scammer Bruce Brise Sentenced To 50 Months
by Team Business For Home • • 0 Comments
Founders of Crypto ICO Sentenced to Combined 8 Years in Prison for Tax Evasion After Raising $24 Million from Investors.
The owners of a cryptocurrency company have been sentenced to a combined 8 years in federal prison for tax evasion, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bitqyck founders Bruce Bise, 61, and Samuel Mendez, 65, were charged with tax evasion in August 2021.
Mr. Bise pleaded guilty on Sept. 9, 2021 and was sentenced on March 7, 2022 to 50 months in federal prison;
Mr. Mendez pleaded guilty on October 12, 2021 and was sentenced this afternoon to 50 months in prison. U.S. District Judge Jane J. Boyle ordered the men jointly and severally liable for $1.6 million apiece.
According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors.
Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and rent.
“Crypto actors are required to pay their fair share of taxes, just like everyone else,” said U.S. Attorney Chad Meacham.
“Not only did these defendants shirk their tax obligations, they lied to investors and made
Hot Business News Today
Why a Stint in Prison Taught This Entrepreneur the Meaning of Freedom
by David Meltzer • • 0 Comments
Hot Business News Today
What Visiting a Maximum Security Prison Taught Me About Entrepreneurship and Life
by Raj Jana • • 0 Comments
Hot Business News Today
5 Leadership Lessons CEOs Can Learn From Prison Shot Callers
by Andrew Medal • • 0 Comments
Being on both sides of the cell door, I know there’s a lot that CEOs can learn from their prison counterparts.
Hot Business News Today
Creator of Doomed Fyre Festival Gets 6-Year Prison Sentence
by Edgar Alvarez • • 0 Comments
Hot Business News Today
TelexFree CEO James Merrill – Prosecutors Recommend 10 years In Prison
by Ted Nuyten • • 0 Comments
Organizing a Ponzi in the USA is a bad idea, Zeek Rewards CEO Paul Burks got 14 years, COO Dawn Wright Olivares 7.5 years and 2 years for CTO Daniel Olivares.
Federal prosecutors are recommending 10 years of prison time for James Merrill, the former Chief Executive of TelexFree Inc., for his role in one of the largest pyramid schemes of all time.
Merrill, of Ashland, pleaded guilty in October to multiple fraud counts for his role in the global scheme, in which nearly 1.9 million people from more than 100 countries lost $3.5 billion.
He will be sentenced in federal court in Worcester next week, while his business partner, Carlos Wanzeler, remains a fugitive in his native Brazil.
In sentencing memorandums filed Thursday, prosecutors alleged that from February 2012 to April 2014, Merrill ran
Hot Business News Today
Paul Burks ZeekRewards CEO Sentenced To 14 Years In Prison
by Ted Nuyten • • 0 Comments
A federal judge Monday handed Paul Burks, founder of ZeekRewards.com, three concurrent prison sentences of 14 years and eight months for his lead role in the Ponzi scheme.
Judge Max Cogburn Jr. agreed with U.S. attorneys’ “fair and generous” sentencing recommendation, a minimum 15 years and eight months and a maximum 19 years and seven months for the 70-year-old Burks. Burks could have been sentenced to up to 59 years under federal sentencing guidelines.
ZeekRewards.com, founded in 2010, was one of the largest Ponzi schemes in U.S. history at $939 million, according to federal regulatory officials and prosecutors.
The Lexington companies, which debuted in January 2011, were shut down and their assets frozen in August 2012. There were more than 800,000 victims worldwide.
Cogburn dropped Burks’ sentencing by a year so that it would be about double the