BlockNews
FOLLOW ON X
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • SUI
    • CHAINLINK
    • LITECOIN
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Co-founder of Pyramid Scheme, OneCoin, Sentenced to 20 Years in Prison

BlockNews Team by BlockNews Team
September 14, 2023
in CRYPTO, MEDIA, SOCIAL
Reading Time: 3 mins read
1
SHARES
13
VIEWS
Share on XShare in TelegramShare on Reddit
  • Karl Greenwood, one of the founders of the OneCoin pyramid scheme, has been sentenced to 20 years in prison.
  • U.S. District Judge Edgardo Ramos also ordered him to return the $300 million profit he made from the scheme.

Co-Founder of Pyramid Scheme, OneCoin, Faces 20-year Prison Sentence

On Tuesday, U.S. District Judge in Manhattan, Edgardo Ramos, sentenced Karl Sebastian Greenwood, the Co-founder and global master distributor of OneCoin, to 20 years in prison.

Karl Greenwood pleaded guilty to fraud and money laundering charges in December 2022, two years after he was extradited to the United States from Thailand.

He was also ordered by the court to relinquish the $300 million he made from the scheme.

OneCoin, A Pyramid Scheme

Greenwood co-founded OneCoin, a pyramid scheme that defrauded 3.5 million victims of over $4 billion. In 2014, OneCoin launched its pyramid scheme in Bulgaria, posing as a cryptocurrency. The scheme executives told investors the token had real-world value and could be mined. However, OneCoin did not exist on the blockchain; instead, it was a fraudulent scheme that rewarded investors when they brought in participants.

“GREENWOOD also lied to investors about the utility of the tokens included in trader packages, claiming that they could be used to secure positions in OneCoin’s “mining pools,” depicted in promotional materials as computer hardware used to “mine” OneCoins.  But there were no mining pools and no computers to mine OneCoin either,” the court filing reads.

Greenwood and Ignatova exploited Bitcoin’s influence to market their non-existent token. They made deliberate comparisons between Bitcoin and OneCoin and marketed the scheme as a cryptocurrency inspired by the growth and success of Bitcoin.

The founders of the fraudulent cryptocurrency made multiple misrepresentations to investors, including owning a private blockchain.

“OneCoin also claimed to have a private “blockchain,” or a digital ledger identifying OneCoins and recording historical transactions.  But, in reality, OneCoin lacked a true blockchain — that is, a public and verifiable blockchain. Indeed, by approximately March 2015, GREENWOOD and IGNATOVA had started allocating to members OneCoins that did not even exist in OneCoin’s purported private blockchain, referring to these coins as fake coins,” the court filing reads.

As reported by the attorney’s office, Greenwood’s role in the pyramid scheme was beyond his position as a co-founder. He was also the global master distributor and leader of the multi-level marketing (MLM) channel in which the fraudulent crypto was marketed. He earned 5% of the monthly sales of OneCoin globally.

Greenwood co-founded OneCoin with Ruja Ignatova, known as “Crypto Queen”. Her name was on the FBI’s top ten most wanted list last year. Prosecutors said she remains at large.

In 2017, Ruja Ignatova was charged with OneCoin-related fraud and monetary charges, and a warrant was issued for her arrest. She traveled to Greece and has not been seen since then.

Greenwood was arrested in 2018 and was extradited to the U.S. from Thailand. He was detained in the United States on arrival and pleaded guilty to fraud and monetary charges last December.

Although prosecutors sought a 30-year prison sentence for the co-founder of the scheme, he was sentenced to 20 years for his financial crimes.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.
Tags: OneCoinPyramid Scheme
TweetShareShare
BlockNews Team

BlockNews Team

DON'T MISS THESE! HOT OFF THE PRESS

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade
CRYPTO

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade

September 17, 2025
How to Go From Zero to Your First Profitable Trade in Crypto (2025)
BITCOIN

How to Go From Zero to Your First Profitable Trade in Crypto (2025)

September 17, 2025
What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News
CHAINLINK

What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News

September 17, 2025
What is Arbitrum? Why ARB is an Underpriced Crypto Gem Hiding in Plain Sight
CRYPTO

What is Arbitrum? Why ARB is an Underpriced Crypto Gem Hiding in Plain Sight

September 17, 2025
Here is Why Experts Predict a 40X Rally for Pepe Coin After $25M Whale Outflow
CRYPTO

Here is Why Experts Predict a 40X Rally for Pepe Coin After $25M Whale Outflow

September 17, 2025
Here is Why SUI Could Soar 200% on Google Cloud Partnership and ETF Buzz
CRYPTO

Here is Why SUI Could Soar 200% on Google Cloud Partnership and ETF Buzz

September 17, 2025
Load More

Related News

Coinbase Teams Up with Ethereum Foundation on Open Intents Framework

Coinbase Teams Up with Ethereum Foundation on Open Intents Framework

September 18, 2025
Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade

Here is What Aave’s CEO Just Revealed About the Q4 2025 Upgrade

September 17, 2025
How to Go From Zero to Your First Profitable Trade in Crypto (2025)

How to Go From Zero to Your First Profitable Trade in Crypto (2025)

September 17, 2025
What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News

What Happened in Crypto Today? – September 17: Fed Interest Rate Decision, Bullish DOGE and LINK News

September 17, 2025
Jerome Powell October Rate Decision Outlook: What to Expect and How it Will Effect You

Jerome Powell October Rate Decision Outlook: What to Expect and How it Will Effect You

September 17, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews is your premier source for real-time cryptocurrency, blockchain, political and financial market news.

Stay ahead of the herd with BlockNews

RESOURCES

  • About Us
  • Contact Us
  • Editorial Policies
  • Terms and Conditions
  • Privacy Policy
  • Sitemap

DISCLOSURES AND POLICIES

BlockNews provides independent reporting on crypto, blockchain, and digital finance. Content is for informational purposes only and does not constitute financial advice. Sponsored material is always disclosed. By using this site, you agree to our Terms and Conditions and Privacy Policy.

© 2025 BlockNews

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO
    • ETHEREUM
    • RIPPLE XRP
    • SOLANA
    • CARDANO
    • BINANCE BNB
    • DOGECOIN
    • TRON
    • LITECOIN
    • CHAINLINK
    • SUI
  • MEMECOINS
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2025 BlockNews