Karl Sebastian Greenwood has admitted to wire fraud and money laundering charges related to OneCoin.
Greenwood (on the right) was to go to court in May 2023.
Greenwood (right) chose to plead guilty after a new indictment, which has not been made public, was filed.
There was no deal with the DOJ.
The case docket for Greenwood hasn’t been updated yet on Pacer, but the DOJ has put out a press release about Greenwood’s plea.
KARL SEBASTIAN GREENWOOD, who started OneCoin with RUJA IGNATOVA, also known as “the Cryptoqueen,” pleaded guilty today in Manhattan federal court to charges of wire fraud and money laundering related to his role in the huge OneCoin scam.
Today, GREENWOOD’s plea of guilty was accepted by District Judge Edgardo Ramos.
As for Greenwood’s role in OneCoin, which was already mentioned in his indictment;
OneCoin was started by GREENWOOD and IGNATOVA in 2014.
GREENWOOD was the “global master distributor” of OneCoin and the leader of the MLM network that was used to market and sell the fake cryptocurrency.
As the top MLM distributor of OneCoin, GREENWOOD made about €20 million per month.
Inner City Press reports that Greenwood said the following at his plea hearing:
I met Ruja Ignatova, and we started OneLife, which includes OneCoin in its packages. We compared it to Bitcoin in the wrong way.
But I knew that OneCoin had no real worth. We went after the US and kept the source a secret. I knew it was a bad idea.
Inner City Press also says that Greenwood, who now has “a thin mustache and a small ponytail/bun,” is in therapy for a mental health problem.
U.S. Attorney Damian Williams said as a warning to other MLM crypto Ponzi scammers;
This guilty plea by the co-founder of OneCoin ends a week at SDNY that sends a clear message that we will go after anyone who tries to use fraud to take advantage of the cryptocurrency ecosystem, no matter how big or smart you are.
Greenwood, who is 45, could go to prison for up to 60 years. Even if Greenwood’s sentence is shortened, it is likely he will spend the rest of his life in jail.
The date set for Greenwood’s sentencing is April 5, 2023.