Co-founder of $4 Billion Crypto Fraud Scheme Sentenced to 20 Years in Prison, 'Cryptoqueen' Partner Remains at Large

Damian Williams, the top federal prosecutor in Manhattan, speaks at a press conference to announce the addition of “Cryptoqueen” Ruja Ignatova to the FBI’s most-wanted fugitives list, in New York, June 30, 2022.

Karl Greenwood, one of the co-founders of the fraudulent cryptocurrency OneCoin, has been sentenced to 20 years in prison, while his partner, Ruja Ignatova, known as the "Cryptoqueen" and on the FBI's Top 10 Most Wanted list, remains at large. Here are the key points:

1. Karl Greenwood, 46, was responsible for orchestrating the massive pyramid scheme behind OneCoin, which fraudulently amassed over $4 billion from millions of investors worldwide. He pleaded guilty in December to wire fraud and money laundering charges.

2. His partner, Ruja Ignatova, 43, remains a fugitive and is sought by law enforcement agencies. Ignatova's alias as the "Cryptoqueen" highlights her prominent role in the scheme.

3. The fraudulent scheme, OneCoin, operated between 2014 and 2016 and originated in Bulgaria. It managed to attract funds from at least 3.5 million people, making it one of the largest scams in cryptocurrency history.

4. OneCoin was promoted and sold through a multilevel marketing structure, with OneCoin members earning commissions for recruiting others to buy crypto packages.

5. Karl Greenwood, as the top distributor, received a significant share, accumulating over $300 million from OneCoin sales, according to the U.S. Department of Justice.

6. Unlike legitimate cryptocurrencies like Bitcoin, OneCoin had no real value and was designed as a fraudulent venture from its inception, as confirmed by authorities.

7. The co-founders consistently deceived investors by falsely claiming that OneCoin's value was determined by market forces, when in reality, its price was arbitrarily set.

8. Ruja Ignatova faced charges related to fraud and money laundering in October 2017. However, she managed to evade arrest by leaving Bulgaria for Athens, Greece, shortly after a federal warrant was issued.

9. Since her escape, Ruja Ignatova has remained out of the public eye, with her whereabouts unknown. The FBI has offered a reward of up to $250,000 for information leading to her arrest.

10. Ignatova is believed to have taken precautions to alter her appearance and may travel with armed guards or associates, making her a challenging fugitive to locate.

The sentencing of Karl Greenwood sends a strong message against cryptocurrency fraud and financial scams, while the search for Ruja Ignatova continues as authorities aim to bring her to justice. 

Bollywood Actor Govinda to Assist in Rs 1,000 Crore Ponzi Scam Investigation

Bollywood actor Govinda in connection with a sprawling Rs 1,000 crore online ponzi scam investigation

In a surprising turn of events, the Odisha Economic Offences Wing (EOW) has decided to question renowned Bollywood actor Govinda in connection with a sprawling Rs 1,000 crore online ponzi scam investigation. However, it's important to note that Govinda is currently not considered a suspect or an accused in the case. His involvement, if any, is yet to be determined and will depend on the outcome of the investigation.

The complex scam revolves around a fraudulent entity known as Solar Techno Alliance (STA-Token), which masqueraded as a crypto investment venture. Operating with an online presence in multiple countries, STA-Token managed to collect unauthorized deposits amounting to a staggering Rs 1,000 crore from over 2 lakh individuals across India.

Govinda's association with the company came into the spotlight as he had reportedly endorsed its operations in promotional videos. This endorsement has prompted EOW officials to seek his cooperation in gathering additional information regarding the case.

EOW Inspector General J. N. Pankaj stated, "We will soon send a team to Mumbai to question film star Govinda who had attended STA's grand function in Goa in July and promoted the company in some videos."

The extent of Govinda's involvement, whether it was limited to celebrity endorsement or extended into other areas, will be determined through a thorough investigation. At this point, he remains a potential witness who can shed light on the activities of STA-Token.

The fraudulent company managed to amass Rs 30 crore from 10,000 individuals in various locations, including Bhadrak, Keonjhar, Balasore, Mayurbhanj, and Bhubaneswar, and attracted deposits from investors in several states such as Bihar, Uttar Pradesh, Punjab, Rajasthan, Haryana, Delhi, Jharkhand, Assam, and Madhya Pradesh. The company lured individuals to invest and recruit others under their network chain, promising incentives based on the number of recruits.

Earlier developments in the case saw the arrest of Gurtej Singh Sidhu and Nirod Das, who were the heads of the company in India and Odisha, respectively, on August 7. Furthermore, investment adviser Ratnakar Palai from Bhubaneswar was apprehended on August 16 due to his connection with Sidhu. Lookout circulars have been issued against the company's chief, David Gez, a Hungarian national, and three other Indian executives from Rajasthan, namely Krishna Kumar, Anil Kumar, and Bhoora Ram, all of whom are alleged to have played a role in the scam.

As the investigation unfolds, the role of Govinda and others associated with STA-Token will become clearer, shedding light on the inner workings of this elaborate online ponzi scheme.