- March 22, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Cryptocurrency regulation is getting more challenging in the United States following several cases of fraud and crashes of crypto-related firms. The regulators put up tighter measures with an intensive crackdown on fraudulent crypto schemes. Also, US prosecutors are on the scene to handle cases of persons regarding unlawful crypto activities.
In a new development, OneCoin’s head of compliance, Irina Dilkinska, faces 40 years of imprisonment on charges of fraud. The executive was accused of being involved in the fraudulent crypto scheme OneCoin.
US Prosecutors Charge Dilkinska Regarding Involvement With Fraudulent Crypto Scheme
The United States Department of Justice (DoJ) charged the former head of legal and compliance at OneCoin, Dilkinska, on March 21. According to the statement, Dilkinska faces one count of conspiracy in committing money laundering and one count of wire fraud. Each count has a maximum 20 years imprisonment sentence.
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The executive is accused of her involvement in the laundering of more than $400 million of proceeds from the OneCoin crypto firm. Also, Dilkinska destroyed all incriminating evidence when she discovered the arrest of a co-conspirator, which portrays implicating messages. She compromised her job title regarding Onecoin’s compliance with regulatory laws.
Dilkinska reportedly hid in Bulgaria, where she was deported on March 20. According to the report from US Attorney Damian Williams, Dilkinska’s actions were opposite to her job title.
Williams noted that as the Head of Legal and Compliance, Dilkinska should ensure that OneCoin complies with all regulatory laws. However, she assisted in laundering millions of dollars of OneCoin’s illegal proceeds via shell firms.
OneCoin Co-Founder On The Run Due To Fraudulent Scheme
Ruja Ignatova and Karl Sebastian Greenwood founded OneCoin in 2014 as a project that claimed to market a crypto token with the same name. However, the project was discovered to be a fraudulent pyramid scheme.
In its operation, OneCoin offered commissions to members after recruiting people to buy the token, just like an MLM network. Some regulators noted that the founders created the project as a business to defraud investors.
The OneCoin Scheme grew with time, with over three million people investing in it. Between 2014 and 2016, OneCoin generated more than $6 billion in revenue sales and operating profits. Subsequently, the founders of OneCoin disappeared with most of the proceeds.
However, the US authorities were able to arrest one of them. According to DoJ’s December report, Greenwood pleaded guilty to multiple charges, including wire fraud and money laundering. So, he is facing 60 years of imprisonment.
Ignatova, also known as the ‘crypto queen,’ has been on the run since October 2017, trying to avoid law enforcement agencies. She boarded a flight to Greece 15 days following a federal warrant that was issued to arrest her.
The Federal Bureau of Investigation (FBI) included Ignatova in the Top Ten Most Wanted List in June 2022. Also, the FBI is offering a reward of $100,000 for information that will lead to the arrest of the ‘crypto queen.’
Featured image from Pixabay and chart from Tradingview.com
