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Carl Sebastian Greenwood, co-founder of the multi-billion dollar cryptocurrency scam OneCoin, has pleaded guilty to multiple US Justice Department charges and faces up to 60 years in prison.
On December 16, the Justice Department announced that Greenwood had filed a guilty plea in federal court in Manhattan on charges of fraud, conspiracy to commit fraud and conspiracy to commit money laundering, with each charge carrying a maximum possible penalty of 20 years in prison.
U.S. Attorney Damian Williams claimed that Greenwood ran “one of the largest international scams ever perpetrated” and claimed that he advertised OneCoin as a “bitcoin killer” while in reality, the tokens were “completely worthless.”
Outwardly, the company billed itself as a multi-level marketing firm whose members received commissions for selling cryptocurrency packages, apparently containing OneCoin and the opportunity to earn more. OneCoin could only be exchanged for currency on the private exchange Xcoinx.
It was really a pyramid scheme, as investors could recruit others into the scheme with no real product, and subsequent investors received money from previous investors.
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