Introduction
OneCoin co-founder, David Gilbert S?rensen Greenwood, has been sentenced to 20 years in prison for his involvement in the OneCoin cryptocurrency fraud scheme. The sentence was handed down by a New York federal court on Wednesday, July 14, 2021.
Greenwood, who is a citizen of Sweden, was arrested in Thailand in 2018 and extradited to the United States in 2019. He pleaded guilty to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering.
The OneCoin Fraud Scheme
The OneCoin cryptocurrency was a scam created by Bulgarian national Ruja Ignatova and her brother Konstantin Ignatov. The scheme was operated from 2014 to 2018 and reportedly raised $4 billion from investors around the world.
Investors were promised high returns on their investments, but the OneCoin cryptocurrency was never listed on any legitimate exchanges, and its value was based on false claims made by the company. The scheme collapsed in 2018, and Ignatova was indicted on charges of wire fraud, securities fraud, and money laundering.
Greenwood’s Role in the Scheme
Greenwood was one of the co-founders of OneCoin and played a key role in promoting the cryptocurrency to investors. He appeared at numerous events and conferences around the world, presenting OneCoin as a legitimate investment opportunity.
However, Greenwood was well aware that OneCoin was a scam and actively participated in its fraudulent activities. He helped to create fake promotional materials and instructed others to lie about the cryptocurrency’s value and legitimacy.
The Sentencing
At his sentencing hearing, Greenwood apologized to the victims of the OneCoin fraud scheme and admitted that he had made a terrible mistake. However, the judge noted that Greenwood had played a significant role in the scheme and had shown no remorse until he was caught.
In addition to his 20-year prison sentence, Greenwood was also ordered to forfeit $72 million in assets that he had acquired through the OneCoin scheme.
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Conclusion
The sentencing of David Greenwood is a reminder that cryptocurrency fraud remains a serious problem in the industry. Investors should always exercise caution and do their due diligence before investing in any cryptocurrency. The OneCoin fraud scheme was one of the largest cryptocurrency scams in history, and it is a stark reminder that investors must be vigilant in protecting their investments.
