On April 12, 2020, Manhattan prosecutors from the New York Southern District Court (NYSD) unsealed indictment charges against OneCoin cofounder Sebastian Greenwood.
The documents allege that Greenwood, alongside his accomplices Ruja Ignatova the ‘Crypto Queen’ and her brother Konstantin Ignatov, committed fraud on a multi-billion dollar level. Greenwood’s pretrial conference will take place on June 3, 2020.
Meanwhile, as the public finds out that Greenwood has five charges against him, NYSD prosecutors have also postponed Konstantin Ignatov’s sentencing. The reason Ignatov’s sentencing has likely been rescheduled to July 8, 2020, is because he has been cooperating with NYSD prosecutors as a witness.
The Onecoin scam was a Ponzi scheme that involved a great number of people worldwide who believed the project was a real cryptocurrency. However, OneCoin did not have a blockchain, and it was definitely not a cryptocurrency, but it was sold as one for many years.
Essentially, OneCoin buyers purchased packages and recruited others to do the same by being incentivized with obtaining more OneCoins. However, no one could ever use the so-called asset, withdraw it or do anything with these packages because they were not real.
US Prosecutors Want to Seize Greenwood’s Possessions
Because Greenwood and his associates committed fraud in the US and sold Onecoin packages to Americans, the NYSD court wants Greenwood to forfeit all of his properties, possessions, and any remaining funds to the US government.
The prosecutors stressed that Greenwood’s charges had been placed within the Southern District of New York’s jurisdiction. Greenwood’s indictment was filed under seal per order of the US Marshals on February 6, 2018. The prosecutors have Greenwood and the other two accomplices on record doing Onecoin webinars and other acts within the US in order to lure more investors.
Other individuals allegedly involved in the billion-dollar scam include Ruja Ignatova and Konstantin Ignatov. They’ve both been indicted by US prosecutors, but Ruja still remains at large. Ignatov is in custody and has shared a testimony about his sister Ruja and has also discussed former US attorney Mark Scott’s alleged involvement with Onecoin as well.
Lead Plaintiff Missed 2 Consecutive Reporting Deadlines
Lead plaintiff Donald Bordeaux, who had initially filed the lawsuit against OneCoin in May 2019, will have to justify why the $4 billion class-action suits against OneCoin should continue after he again failed to meet the court’s deadline for the submission of monthly reports.
“Lead plaintiff is sternly warned that failing to comply with the court’s orders going forward could result in sanctions.” Judge Caproni wrote in response to the lead plaintiff missing reporting deadlines for both March and April.
The judge then ordered that Berdeaux must show cause no later than April 16, 2020, as to why this case should not be dismissed with failure to prosecute.