TL;DR

Karl Sebastian Greenwood, co-founder of OneCoin, has been sentenced to 20 years in prison for his involvement in a $4 billion cryptocurrency scam. Ruja Ignatova, known as the 'Cryptoqueen,' remains at large.

Key Takeaways

Karl Sebastian Greenwood was sentenced to 20 years in prison in the United States.
Over 3.5 million people lost more than $4 billion due to OneCoin.
Greenwood pleaded guilty to wire fraud and money laundering.
Ruja Ignatova, the 'Cryptoqueen,' is still on the FBI’s Most Wanted list.
OneCoin was falsely marketed as a legitimate cryptocurrency.
Greenwood’s sentence serves as a warning against cryptocurrency fraud.

What Happened in the OneCoin Scandal?

Karl Sebastian Greenwood, co-founder of OneCoin, has been sentenced to 20 years in a U.S. prison. This case highlights one of the largest cryptocurrency frauds in history, involving over $4 billion and more than 3.5 million victims worldwide.

The OneCoin Scam: A $4 Billion Fraud

Launched in Bulgaria in 2014, OneCoin was marketed as a legitimate cryptocurrency with high potential returns. Investors were promised opportunities to mine tokens, similar to Bitcoin. However, OneCoin was a fraudulent scheme with no real value.

Greenwood’s Role in the Scheme

As a dual citizen of the UK and Sweden, Greenwood was a key figure in OneCoin's operations. He served as a 'global master distributor,' managing the multilevel marketing network. His role allowed him to earn a significant portion of OneCoin's revenue, totaling over $300 million.

The Ongoing Search for Ruja Ignatova

While Greenwood was sentenced, Ruja Ignatova, the public face of OneCoin, remains on the run. She disappeared in 2017 and is now on the FBI’s Top Ten Most Wanted list, facing charges of fraud and money laundering.

Greenwood’s Sentence: A Deterrent for Future Fraudsters

Greenwood's 20-year sentence sends a strong message against cryptocurrency fraud. U.S. District Judge Edgardo Ramos also ordered him to forfeit $300 million, reflecting the scale of his fraudulent activities.

The Search for the ‘Cryptoqueen’ Continues

The mystery surrounding Ruja Ignatova captivates many. The BBC podcast 'The Missing Cryptoqueen' explores her rise and disappearance. The FBI has offered a $250,000 reward for information leading to her capture.

Conclusion

The OneCoin saga serves as a crucial lesson in the cryptocurrency industry, highlighting the need for thorough research and skepticism regarding investment opportunities. As the search for the 'Cryptoqueen' continues, this case underscores the importance of regulatory oversight and investor education in the digital currency landscape.