On September 12, 2023, Karl Sebastian Greenwood, a co-founder of the fraudulent cryptocurrency scheme OneCoin, received a 20-year prison sentence and was ordered to forfeit $300 million by the U.S. Attorney’s Office in the Southern District of New York, United States.

OneCoin was an elaborate cryptocurrency scam operated by offshore companies: OneCoin Ltd, based in Bulgaria and registered in Dubai, and OneLife Network Ltd, registered in Belize. These entities were founded by Sebastian Greenwood in collaboration with fugitive Ruja Ignatova, known as “Cryptoqueen.” Between 2014 and the time of its exposure, OneCoin managed to raise over $4 billion in fraudulent investments.

Greenwood played a pivotal role in designing OneCoin’s multi-level marketing (MLM) structure, holding the title of “global master distributor” and acting as a key leader in the scheme. His 5% share of monthly OneCoin sales resulted in personal gains amounting to $300 million. Subsequently, he indulged in lavish personal expenses, luxurious resorts, and extensive travel.

Greenwood’s legal troubles began when he was arrested in Thailand in July 2018 and subsequently extradited to the United States in October 2018. He faced a series of convictions on various charges in December 2022.

Meanwhile, his co-founder, Ruja Ignatova, had already faced charges in 2017 and currently remains on the FBI’s Top Ten Most Wanted List and the European wanted list. Additionally, several other members of the OneCoin operation, namely Frank Schneider, Irina Dilkinska, Christopher Hamilton, and Mark Scott, have also been convicted.