According to the <a href="https://www.cryptoknowmics.com/news/department-of-justice-doj-supports-sec-in-ftx-investigation-wsj">Department of Justice</a>, one of OneCoin's creators <a href="https://www.justice.gov/usao-sdny/pr/co-founder-multi-billion-dollar-cryptocurrency-pyramid-scheme-onecoin-pleads-guilty" target="_blank" rel="nofollow noopener">admitted</a> guilt on Friday to federal charges stemming from one of the biggest financial frauds like money laundering and wire fraud ever.
<h2>OneCoin Founder Admits Accusations of Wire Fraud</h2>
Prosecutors said that the putative <a href="https://www.cryptoknowmics.com/news/amber-group-acquires-300-million-via-fundraising">cryptocurrency</a> initiative was fake from the start in 2014. OneCoin, which Karl Greenwood co-founded, established a pyramid scheme to advertise it to millions of individuals and make as much as $4 billion in profit, according to the prosecution. In an internal communication, Greenwood, 45, is accused of calling the investors "idiots." Greenwood admitted to wire fraud and a conspiracy to launder money.

The U.S. Attorney for the Southern District of New York, Damian Williams, stated that Karl Sebastian Greenwood managed one of the greatest international fraudulent transactions ever undertaken. Greenwood and his accomplices, who included wanted criminal Ruja Ignatova, defrauded unwary victims of billions of dollars by asserting that OneCoin would be the <a href="https://www.cryptoknowmics.com/news/shares-of-bitcoin-miner-argo-blockchain-banned-in-uk-and-us">Bitcoin</a> killer.
<h2>FBI Looking for Ignatova (CryptoQueen)</h2>
Ignatova, also a creator of OneCoin and a resident of Bulgaria, is still wanted by the <a href="https://www.cryptoknowmics.com/news/ex-fbi-agent-to-head-binance-us-head-of-investigations-unit">Federal Bureau of Investigation (FBI)</a> as the "CryptoQueen." For information that results in her arrest, the FBI is offering a $100,000 reward.

The court case in question, along with other recent proceedings, according to Williams, is intended to send a powerful signal that is coming after everyone who wants to abuse the cryptocurrency community via fraud, no matter how big or clever an individual is. Greenwood, a Swedish and British national, was detained in 2018 and extradited to the United States from his home in Thailand.

OneCoin Co-Founder Admits to Wire Fraud and Money Laundering

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OneCoin Co-Founder Admits to Wire Fraud and Money Laundering

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