Ruja Ignatova, the infamous “Cryptoqueen,” remains at large. The mastermind behind a staggering $4 billion Ponzi scheme has successfully evaded capture for six years.
As the global authorities tighten their net, Ignatova’s closest accomplice, Karl Greenwood, has been sentenced to 20 years for his part in the audacious OneCoin fraud.
Cryptoqueen Ruja Ignatova’s Background
Ruja Ignatova is a brilliant scholar from Oxford University with an illustrious educational background. She mysteriously disappeared from public view in 2017, shortly after being charged with one of the largest crypto frauds ever recorded.
Ignatova’s last known whereabouts trace back to a commercial flight she took from Sofia, Bulgaria, to Athens, Greece. Meanwhile, the FBI, recognizing the gravity of the crimes, has placed her on the Top Ten Most Wanted list since last June.
The enigma surrounding Ignatova thickens when considering her impressive academic achievements and professional career.
She is a recipient of a prestigious scholarship to Konstanz University. Later on, she graduated from Oxford with a master’s degree in comparative European Law. Consequently, this makes the Cryptoqueen’s journey into the murky waters of a fraudulent crypto venture unexpected.
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Before her descent into crypto, Ignatova had esteemed roles with the global consulting firm McKinsey and ventured into investment banking.
The Birth of $4 Billion Scam, OneCoin
In collaboration with Swedish national Karl Greenwood, Ignatova birthed OneCoin in 2014. According to prosecutors, OneCoin was a deliberate fraud from its inception. The duo cleverly marketed this fraudulent crypto using a global multi-level marketing strategy, attracting over $4 billion from at least 3.5 million victims.
Ignatova and Greenwood incentivized members with commissions for recruiting others, effectively perpetuating the scam.
“Greenwood lied to investors about the utility of the tokens included in trader packages, claiming that they could be used to secure positions in OneCoin’s “mining pools,” depicted in promotional materials as computer hardware used to “mine” OneCoins. But there were no mining pools and no computers to mine OneCoin either,” court documents read.
Disturbingly, OneCoin’s value was baseless. Its worth was arbitrarily assigned by Ignatova and Greenwood rather than being rooted in genuine market dynamics of supply and demand.
“OneCoin claimed to have a private ‘blockchain,’ or a digital ledger identifying OneCoins and recording historical transactions. But, in reality, OneCoin lacked a true blockchain — that is, a public and verifiable blockchain,” court documents read.
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Living the high life, Greenwood accrued over $300 million from this pyramid scheme as he garnered 5% of the global monthly sales of OneCoin. His extravagant lifestyle choices ranged from lavish stays at upscale resorts to extravagant fashion splurges. He even earmarked funds for a luxury Sunseeker yacht.
Thankfully, justice caught up with Greenwood when he was arrested in Thailand in 2018 and extradited to the US.
“As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated… [Greenwood] conned unsuspecting victims out of billions of dollars with… claims that OneCoin would be the ‘Bitcoin killer.’ In fact, OneCoins were entirely worthless,” US Attorney Damian Williams said.
During Greenwood’s sentencing, the weight of his crimes seemed to dawn on him. Although he previously referred to OneCoin investors as “idiots,” he recently expressed profound remorse for his actions.
“The pain I caused others – the victims – I cannot take it back. I’m deeply sorry. I destroyed my life and caused irreparable harm to many others,” Greenwood said.
Read more: OneCoin Co-Founder Receives 20-Year Sentence and $300M Fine
The malevolent partnership of Ignatova and Greenwood painted a picture of a coming “financial revolution.” Such grandiose claims were instrumental in swindling billions from unsuspecting victims.
Where Is Cryptoqueen Ruja Ignatova?
Still, the shadow of Ruja Ignatova, the enigmatic Cryptoqueen, looms large. Her current location remains a mystery, and she is a person of intense interest.
The FBI offers a sizable reward of $250,000 for information that can lead to her arrest. However, Ignatova’s narrative is further clouded by rumors suggesting she might have undergone plastic surgery or altered her appearance to avoid detection.
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This entire episode serves as a warning for investors and regulators alike. In the crypto industry, old scams can don new masks. Therefore, the onus is on individuals and institutions to maintain a discerning eye and a healthy dose of skepticism.
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