The cofounder and main promoter of the $4 billion OneCoin pyramid scheme was sentenced to 20 years in prison for his role in one of the first and biggest criminal frauds involving cryptocurrency. Bloomberg:

Karl Sebastian Greenwood, 46, was sentenced in New York Tuesday, after pleading guilty in December to creating and promoting a phony cryptocurrency. Greenwood was the wingman of Ruja Ignatova, the so-called “Cryptoqueen” and most wanted crypto fugitive in the world. US District Judge Edgardo Ramos called the fraud “massive in many respects,” noting that OneCoin had no blockchain, no real cryptocoin and no trading market. Victims could not withdraw their investments and most face the likelihood they’ll never get any of their money back. “At base, it involved nothing more than old-fashioned snake oil,” the judge said. Greenwoood’s sentencing closes one chapter of the OneCoin case, which authorities describe as one of the largest pyramid schemes in history. It impacted 3.5 million victims across the globe and foreshadowed a broader crackdown on crime in the cryptocurrency markets.

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