Karl Sebastian Greenwood walked into Manhattan federal court and admitted to helping run one of crypto's biggest frauds. The OneCoin co-founder pleaded guilty today to wire fraud and money laundering charges, bringing an end to a case that exposed how a slick cryptocurrency scam bilked millions of people worldwide.

Greenwood, 45, co-founded OneCoin in 2014 with Ruja Ignatova, the fugitive known as "the Cryptoqueen." He ran the multilevel marketing network that pushed the fake cryptocurrency to unsuspecting investors. At his peak, Greenwood pocketed roughly €20 million a month as OneCoin's global master distributor—the top salesman in a pyramid scheme dressed up as a tech company.

During his plea hearing, Greenwood acknowledged the con. He told Judge Edgardo Ramos he met Ignatova and they launched OneLife, which marketed OneCoin packages by comparing the worthless digital coin to Bitcoin. "I knew OneCoin had no intrinsic value," Greenwood said in court. "We targeted the US and concealed the source. I knew it was wrong."

No plea deal was struck with the Department of Justice. Instead, Greenwood faced a superseding indictment that pushed him to confess rather than risk trial. His legal team had been preparing for a May 2023 trial date before the new charges landed.

U.S. Attorney Damian Williams used Greenwood's guilty plea to send a warning to other crypto fraudsters. "This guilty plea by the co-founder of OneCoin caps a week at SDNY that sends a clear message that we are coming after all those who seek to exploit the cryptocurrency ecosystem through fraud, no matter how big or sophisticated you are," Williams said.

The sentencing date was set for April 5th, 2023. Greenwood faced up to 60 years in prison, and prosecutors made clear they expected him to spend the rest of his life behind bars even with a reduced sentence.

In September 2023, Greenwood was sentenced to 20 years in prison. Court observers noted that Greenwood appeared in court sporting a thin mustache and small ponytail. He had been receiving counseling for mental health issues.

🤖 Quick Answer

Who is Sebastian Greenwood and what charges did he plead guilty to?
Karl Sebastian Greenwood, 45, co-founder of OneCoin cryptocurrency scheme, pleaded guilty to wire fraud and money laundering charges in Manhattan federal court. He admitted to operating a multilevel marketing network promoting fake cryptocurrency, earning approximately €20 million monthly as the global master distributor before the fraud was exposed.

What was OneCoin and how did the scheme operate?
OneCoin was a fraudulent cryptocurrency scam founded in 2014 by Greenwood and fugitive Ruja Ignatova, known as "the Cryptoqueen." Operating as a pyramid scheme disguised as a technology company, it used multilevel marketing to deceive millions of investors worldwide by selling a non-existent digital currency through aggressive sales networks.

What was Greenwood's role in the OneCoin fraud?
Green

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