Former OneCoin Executive Can Be Sentenced on $4B Global Loss, Judge Rules

Former OneCoin Karl Sebastian Greenwood pled guilty to wire fraud and conspiracy charges back in December

article-image

Zolnierek/Shutterstock modified by Blockworks

share

A US judge has ruled that the sentencing of Karl Sebastian Greenwood, who co-founded OneCoin alongside “CryptoQueen” Ruja Ignatova, can cover the global totality of losses from the OneCoin scheme. 

OneCoin was a fake cryptocurrency scheme that was revealed to be fraudulent back in 2017. It claimed to be the “Bitcoin Killer,” but ultimately proved to have no functioning blockchain, much less any chance of displacing bitcoin as an asset.

US losses totaled $50 million, but the global losses to the Ponzi scheme come in at $4 billion.

Last December, Greenwood pled guilty to wire fraud and money laundering in connection to OneCoin. 

“As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest international fraud schemes ever perpetrated.  Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars,” US Attorney Damien Williams said at the time. 

As a result of the judge’s ruling, Greenwood faces a maximum of 60 years in prison. 

In March, Bulgaria extradited Irina Dilkinska, a former head of compliance at OneCoin, to the US for charges of wire fraud and conspiracy to commit money laundering. Dilkinska faces a maximum of 40 years in prison.

“As alleged in the charges unsealed today, Dilkinska helped her co-conspirator, Mark Scott, launder approximately $400 million in OneCoin proceeds while she was purportedly OneCoin’s Head of Legal and Compliance,” FBI Assistant Director Michael Driscoll said

OneCoin founder Ruja Ignatova went missing in 2017 after a federal warrant was issued for her arrest in connection with OneCoin. In June 2022, the FBI added Ignatova to its top 10 most wanted list and issued a $100,000 reward for information that would lead to her arrest.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (1).jpg

Research

Jupiter has emerged as the undisputed liquidity backbone of Solana, commanding over 90% of spot DEX aggregation and 80% of perp trading volume. But behind the numbers lies a far more ambitious play: a cross-chain, vertically integrated super-app spanning swaps, synthetics, NFTs, memecoins, and launchpads. This report explores Jupiter’s rapid rise, the monetization upgrades reshaping its revenue profile, and the risks that could unwind its dominance, from token dilution to competition. With annualized revenues nearing $300M, the upside is undeniable, if it can navigate the turbulence.

article-image

Immutable has been building a game with Ubisoft that was slated to unveil in April. It may be a TCG.

article-image

Curve founder Michael Egorov is working on a new protocol designed to eliminate impermanent loss, rethink token emissions, and capture BTC-native yield

article-image

Mining outfits have gone bust in the wake of prior halvings. Not so this time around.

article-image

Zora’s announcement that its token is for “fun only” sparked a debate about the need for such tokens

article-image

In recent weeks, Helium has hit new all-time highs while passing major protocol milestones

article-image

Financial advisers in a January survey said equity ETFs were their top choice for gaining crypto exposure in 2025