Greenwood, a key figure in the OneCoin pyramid scheme that scammed investors out of $4 billion, was sentenced in a New York court on September 12. This follows his admission of guilt in December, where he confessed to creating and promoting the counterfeit digital currency.
Greenwood collaborated closely with Ruja Ignatova, known as the “Cryptoqueen.” Ignatova is still at large, on the FBI’s most-wanted list. However, there have been reports suggesting Ignatova may have been a victim of foul play back in 2018.
The OneCoin scheme, presided over by US District Judge Edgardo Ramos, was marked by its extraordinary deceit. It posed as a legitimate cryptocurrency platform but lacked crucial elements like a blockchain, actual trading, or a token. Judge Ramos likened the scheme to “snake oil,” leaving investors unable to recover their money.
Furthermore, this sentencing is a crucial milestone in the ongoing One Coin investigation. Additionally, authorities have deemed it one of the biggest pyramid frauds in history. The scheme affected around 3.5 million people globally, prompting increased regulatory scrutiny of digital assets.
One Coin Scam: Deception, Profits, and Justice for Victims
One Coin falsely claimed to have generated 4 billion euros ($4.3 billion) in revenues and 2.7 billion euros ($2.93 billion) in profits between 2014 and 2016. The operation utilized a multi-level marketing strategy, offering substantial commissions to individuals who recruited others to purchase OneCoin packages.
Throughout the scheme, Greenwood and Ignatova deceitfully promised potential investors that OneCoin would rival the value and utility of Bitcoin.
Prosecutors disclosed that Greenwood personally gained $300 million. He used this to buy luxury properties in Spain, Dubai, and Thailand. Additionally, he enjoyed lavish travel on a private jet bearing the OneCoin logo. He also made extravagant purchases, including a down payment for a Sunseeker yacht.
As part of his sentence, Greenwood has been ordered to forfeit his ill-gotten gains, amounting to $300 million. Greenwood expressed remorse in a statement for the lives he ruined. However, this is unlikely to console the millions of victims of this colossal scam.
Greenwood was apprehended in Thailand in 2018, where he was imprisoned and later extradited to the United States.
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