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New Zealand Investigates Second Auckland Church Over OneCoin Scam Links

The Department of Internal Affairs (DIA) in New Zealand is probing the second church in Auckland over allegations that it is linked to OneCoin, a Ponzi scheme promoted as a cryptocurrency with a private blockchain which has been red-flagged as a scam.

As reported by RNZ, the Auckland-based Samoa Worship Centre is the second church to be investigated after the Samoan Independent Seventh Day Adventist Church (SISDAC) was scrutinized in June 2019.

Church members targeted

Experts and investors revealed that OneCoin representatives were crafty as they targeted gullible members of the Samoan community in Auckland, whereby they sold tens of thousands of dollars worth of cryptocurrency. OneCoin has defended itself from any wrongdoings by stipulating that it was not responsible for the so-called “independent contractors” who sold its product.

Following increased global concerns about the OneCoin project, the Samoa authorities moved swiftly by imposing a ban to stop residents from taking part in any transaction involving this program. This did not stop various churches from coercing their members, including the public and ministers, to take part in the project that promised participants enormous returns in a short duration.

Both the Samoa Worship Centre and SISDAC are also being probed for money laundering by Samoa’s Central Bank and police. The claims of the Auckland-based church being associated with OneCoin have been refuted by its pastor Avele Tanielu. His sentiments were echoed by a representative who stipulated that the church was exploring legal action to be taken against the Samoan government.

According to a New Zealand police report, the government has claimed that the two churches were part of various investment avenues used to channel millions of dollars worth of OneCoin from New Zealand to Samoa, where the cryptocurrency is outlawed. SISDAC revealed that it was cooperating with investigative agencies as it affirmed not being part of any money laundering acts.

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DoJ Charges BitClub Promoter for Role in $722 Million Crypto Fraud Scheme

A Californian man has pleaded guilty for his involvement in perpetrating BitClub Network, a cryptocurrency mining scheme estimated to have generated at least $722 million.

BitClub promoter charged with fraud

Joseph Frank Abel pleaded guilty for conspiracy in fraud, and for offering and selling unregistered securities through BitClub Network. The US Department of Justice (DoJ) also charged Abel for subscribing to a false tax return in 2017, allegedly failing to report $1 million worth of earned cryptocurrency. Along with Abel, four other of his accomplices were indicted for their roles in the BitClub Network.

BitClub Network is a fraudulent crypto mining scheme that solicited money from investors in exchange for shares in purported cryptocurrency mining pools. Investors were promised rewards for recruiting new members to the network. The Ponzi scheme was in effect for 5 years, from April 2014 to December 2019 before being shut down. It generated at least $722 million and was advertised digitally by Abel, who was a big-shot promoter for the fraudulent crypto mining network. Based in the US, BitClub Network membership was also marketed throughout Asia, Africa, and Europe.

Through a video conference with the US District Judge Claire C. Cecchi, Abel confessed to soliciting investors and taking their money in exchange for promised shares in BitClub’s crypto mining pools. According to an Internal Revenue Service (IRS) announcement released yesterday, Abel also advised other American investors to use a virtual private network (VPN) to conceal their US-based IP addresses, in an effort to prevent detection from US law enforcement.

The former BitClub promoter is now awaiting his sentencing, set for January 2021. Abel has been fined $250,000 by US regulators and now faces up to five years in prison. As for the tax evasion charge, the fraud count stipulates a maximum penalty of three years of imprisonment and a fine of $100,000.

Ponzi schemes generate billions

Similar cryptocurrency Ponzi schemes that have also been condemned by the DoJ as fraudulent investment scams have generated billions before being shut down. Some of the biggest crypto schemes include OneCoin and BitConnect, which have respectively generated $4 billion and $2.6 billion through money laundering and bank fraud.

Recently, the US Department of Justice sought to reclaim approximately $400 million dollars in a forfeiture money judgment submitted on Monday. Mark Scott, the former attorney for OneCoin founder Ruja Ignatova, was found guilty of money laundering and bank fraud in the multi-billion dollar Ponzi scheme. Currently, law enforcement is asking the US District Court of New York judge to freeze Scott’s assets to recuperate some of the laundered funds. The former lawyer faces disbarment as well.

Leaked FinCEN Files: $137M Linked to Crypto Ponzi Scam OneCoin Laundered Through Bank of New York Mellon

A leaked trove of US official documents revealed that five major banks – Deutsche Bank, HSBC, JP Morgan, Bank of New York Mellon, and Standard Chartered Bank – were involved in illicit transactions pertaining to mobsters, crypto Ponzi schemes, and money laundering.

The official Financial Crimes Enforcement Network (FinCEN) document was leaked and disclosed that more than two trillion USD had been laundered and flagged as suspicious by financial institutions following the Anti-Money Laundering (AML) act. However, the dirty money was still reported to have been freely flowing through renowned US banking institutions.

BNY Mellon wired millions linked to OneCoin

Among them, one of America’s oldest banks, the Bank of New York Mellon (BNY Mellon) was reported to have wired funds linked to the infamous crypto laundering Ponzi scheme OneCoin.

The banking institution flagged a series of transactions from their branch to FinCEN, as the transactions were deemed suspicious and layered. Layering refers to a money laundering ruse through which the source of funds is concealed through multiple transactions. It is often used by mobsters and criminals to remain undetected by the Financial Crimes Enforcement Network and other financial regulators.

$137 million in transactions wired through BNY Mellon

The funds pinpointed by BNY Mellon were linked to OneCoin, a crypto scam that made the headlines and was classified as a Ponzi scheme generating multimillion funds by US law enforcement agents. The crypto Ponzi scheme was masterminded by Ruja Ignatova, who disappeared to flee arrest.

OneCoin was operational in many countries, such as New Zealand and the US, to name a few, and generated at least $4 billion through cryptocurrency “pyramid schemes,” making it one of the most successful and biggest Ponzi scheme in cryptocurrency history.

According to the leaked report, a combined $137 million was wired thanks to numerous transactions operating through the Bank of New York Mellon. The source of the transactions was reported by the bank to originate from OneCoin perpetrators and agents.

Other banks that were named in the leaked FinCen files include Deutsche Bank, JP Morgan, Standard Chartered Bank, and HSBC.

Deutsche Bank

The Deutsche Bank is alleged to have played a role in moving money worth more than $560 million for a Latin American construction company. It is alleged by US prosecutors to have been subject to foreign bribery. FinCEN has recorded a combined total of $1.3 trillion of suspicious transactions flowing through Deutsche Bank, making it the lead bank of the pack for having the largest suspicious transaction volume.

JP Morgan

JP Morgan was said to have processed at least $514 billion of suspicious transactions. It was said to have been involved in a money-laundering operation involving former Trump campaign manager Paul Manafort, and Bernie Madoff. It is also alleged to have conducted business with a financial Malaysian fugitive and a Venezuelan criminal.

Standard Chartered Bank and HSBC

Standard Chartered Bank was said to have processed illicit transactions amounting to a combined $24 million for foreign mobsters.

Finally, HSBC is alleged to have been in cahoots with Russian mobsters, moving funds amounting to at least $4.5 billion in suspicious transactions. The bank is alleged to have continued its money laundering transactions and to have wired funds linked to a Ponzi Scheme. An HSBC Hong Kong executive has been accused of processing more than $900 million in transactions linked to criminal networks.

Statements from Deutsche Bank and other financial banks have said that the incidents that have come to light in the documents have already been investigated and resolved with Deutsche Bank’s complete cooperation.

Oman Central Bank Issues Warning Against Crypto Trading, Specifically Dagcoin

The Central Bank of Oman has warned citizens that cryptocurrencies come with a high risk and specifically highlighted the risks as they pertain to Dagcoin.

In a statement issued through the Oman News Agency, the Central Bank of Oman (CBO) said:

“The Central Bank of Oman once again warns all citizens and residents against using cryptocurrencies such as Dagcoin and others.”

Reported by the Times of Oman on Tuesday, the Central Bank of Oman (CBO) said that cryptocurrencies are highly risky and issued a further warning that singled out Dagcoin, a cryptocurrency that has reportedly seen an uptake in promoters from the Ponzi scheme OneCoin.

The warning is similar to one issued by the central bank of Jordan in 2019, which also highlighted Dagcoin as particularly risky as an investment.

The CBO maintains that cryptocurrency and digital assets are full of risk “due to the fluctuation of their value significantly and the risks of being used for electronic piracy and fraud.”

Oman’s central bank also clarified the regulation, stating it had not issued and licenses that condones the trade of cryptocurrencies and investors that deal with cryptocurrency, do “so on his own responsibility”—as cryptocurrency is not guaranteed to be recognized in Oman as money.

OneCoin Founder Ruja Ignatova Added to FBI's Most Wanted List

Ruja Ignatova, the fraudulent ‘CryptoQueen’ as she is known has been placed on the Federal Bureau of Investigation (FBI) list of the ten most wanted criminals. The addition of Ruja was based on her use of her OneCoin crypto company to defraud millions of investors around the globe in a scheme valued at about $4 billion.

While OneCoin was marketed as a Bitcoin-killer when it was founded back in 2014, the project was marketed without a blockchain of its own like other digital currencies. Rather, subscribers were sold educational cryptocurrency trading packages and were tasked with the responsibility of onboarding family and friends in a complicated Ponzi scheme.

“OneCoin claimed to have a private blockchain,” said Special Agent Ronald Shimko, who is investigating the case out of the FBI’s New York Field Office. “This is in contrast to other virtual currencies, which have a decentralized and public blockchain. In this case, investors were just asked to trust OneCoin.”

The Eventual Collapse of OneCoin

The entire system collapsed as holders of the OneCoin token were unable to convert their holdings and only benefitted from the multilevel marketing aspect of the project. Ruja has been on the run since October 25, 2017, when she was last seen in Greece.

With investigations into OneCoin a multi-agency affair, the FBI had apprehended Ruja’s accomplices who joined hands to run the project, with one of those awaiting sentencing being her brother, Konstantin Ignatov. Despite his plea, Konstantin risks being sentenced to 98 years in prison.

The FBI said Ruja is ranked the 11th woman to be added to its 10 most wanted list since it was established 72 years ago. The law enforcement body said it has a massive bounty of $100,000 for anyone who can provide information that will lead to the arrest of Ruja Ignatova. The FBI said she might have changed her appearances, traveling on a false passport and has ties to her two countries, Bulgaria and Germany as well as Greece and the United Arab Emirates.

“There are so many victims all over the world who were financially devastated by this,” Shimko said. “We want to bring her to justice.”

$4B Co-founder Of OneCoin Fraud Pleads Guilty, Faces 60 Years In Prison

On the accusations of wire fraud and money laundering, the co-founder of the fraudulent scheme is scheduled to have his sentencing hearing in April of 2023.

Karl Sebastian Greenwood, the co-founder of the fraudulent cryptocurrency scheme OneCoin that involved multiple billions of dollars, has pleaded guilty to multiple charges brought forward by the United States Department of Justice (DOJ). He faces a maximum of 60 years in prison if he is found guilty of all of the charges.

The Department of Justice (DOJ) made the announcement on December 16 that Greenwood had entered a guilty plea in a federal court in Manhattan to charges of wire fraud, wire fraud conspiracy, and money laundering conspiracy. Each of these charges carries a maximum potential sentence of 20 years in prison, and the DOJ noted that Greenwood’s guilty plea was entered on December 16.

The United States Attorney for the District of Maryland, Damian Williams, stated that Greenwood ran one of the largest international fraud schemes that have ever been perpetrated and claimed that Greenwood promoted OneCoin as a competitor to Bitcoin when, in reality, the tokens were entirely worthless.

Greenwood was one of the co-founders of OneCoin, a Bulgarian corporation that sold a cryptocurrency with the same name. Cryptoqueen Ruja Ignatova was the other founder of OneCoin.

The Department of Justice received emails sent between the two parties before the company was founded in 2014, and those emails allegedly show that the two referred to it as a worthless currency.

According to the Department of Justice, Greenwood’s position as the worldwide master distributor of the bogus cryptocurrency organization resulted in him collecting about $21.2 million (or €20 million) per month.

There are three million individuals that invested in OneCoin’s packages, and it is estimated that OneCoin defrauded them out of a total of over $4 billion.

As a result of Ignatova’s participation in the scam, the Federal Bureau of Investigation added her name to the top ten most wanted list in June.

She is still at large, and it is believed that she was most recently in Athens, Greece, in October of 2017.

Williams said that Greenwood’s guilty plea sends a loud and obvious message that the DOJ will go after anybody who seeks to abuse the bitcoin ecosystem via fraudulent means, regardless of how large or smart the perpetrator may be.

Former OneCoin Executive Charged with Fraud

The United States Department of Justice has charged Irina Dilkinska, a former executive of the fraudulent cryptocurrency scheme OneCoin, with wire fraud and conspiracy to commit money laundering. Dilkinska, who was extradited from Bulgaria, now faces up to 40 years in prison for her alleged role in aiding the laundering of over $400 million of OneCoin’s proceeds.

OneCoin was a cryptocurrency scheme that has been accused of being a Ponzi scheme and a fraudulent operation. The scheme was founded in 2014 by Ruja Ignatova, who was later indicted by the US government for her role in the scheme. Ignatova is currently a fugitive, and her brother, Konstantin Ignatov, has pleaded guilty to his role in the scheme.

Dilkinska was OneCoin’s former head of legal and compliance and is accused of aiding in the laundering of OneCoin’s proceeds. According to the Department of Justice, Dilkinska allegedly destroyed incriminating evidence and sent incriminating messages upon hearing of a co-conspirator’s arrest. Each count of wire fraud and conspiracy to commit money laundering carries a maximum potential sentence of 20 years in prison.

The OneCoin scheme has been accused of defrauding investors of billions of dollars, and the US government has been actively pursuing legal action against those involved in the scheme. The scheme operated by convincing investors to buy OneCoin tokens, which were then traded on the OneCoin exchange. However, the exchange was found to be fraudulent, and the tokens were worthless.

The OneCoin scheme has been the subject of numerous investigations and legal actions around the world. In addition to the charges against Dilkinska and Ignatova, several other individuals have been indicted in connection with the scheme. The US government has also seized millions of dollars in assets and bank accounts connected to the scheme.

The case against Dilkinska is another example of the US government’s commitment to pursuing those involved in fraudulent cryptocurrency schemes. The government has been increasing its efforts to regulate the cryptocurrency industry and crack down on fraudulent schemes in recent years. The Department of Justice has created a cryptocurrency enforcement framework to help prosecutors identify and investigate cryptocurrency-related crimes.

In conclusion, the charges against Dilkinska highlight the ongoing legal action against those involved in the OneCoin scheme. Dilkinska faces a potential prison sentence of up to 40 years for her role in aiding the laundering of OneCoin’s proceeds. The case is another example of the US government’s efforts to crack down on fraudulent cryptocurrency schemes and regulate the cryptocurrency industry.

OneCoin Co-Founder Sentenced to Two Decades in Prison Over Multibillion-Dollar Fraud

According to the U.S. Department of Justice (DOJ), Karl Sebastian Greenwood, co-founder of the infamous OneCoin cryptocurrency scheme, has been sentenced to 20 years in prison. The decision was handed down by U.S. District Judge Edgardo Ramos, following Greenwood’s involvement in a fraudulent operation that deceived millions of investors worldwide, leading to losses exceeding $4 billion.

OneCoin: A Brief Overview

Founded in 2014, OneCoin Ltd., headquartered in Sofia, Bulgaria, was marketed as a revolutionary cryptocurrency. However, it was later revealed to be a sham, with no real value. The company operated through a global multi-level-marketing (MLM) network, enticing millions to invest based on false promises and misrepresentations.

The Scale of the Fraud

Between Q4 2014 and Q4 2016, OneCoin amassed over $4 billion from at least 3.5 million victims. Greenwood, as the global master distributor, was instrumental in the scheme’s success, earning a staggering 5% of monthly OneCoin sales globally. This amounted to over $200 million in just two years and totaled around $300 million overall.

Misleading Representations

Greenwood and his co-founder, Ruja Ignatova, known as “the Cryptoqueen,” strategically used Bitcoin’s reputation to lure investors. They presented OneCoin as the next big investment opportunity, drawing parallels between the two cryptocurrencies in their marketing materials. However, unlike legitimate cryptocurrencies, OneCoin’s value was arbitrarily set by the company, with no regard for market dynamics.

The Illusion of Legitimacy

OneCoin falsely claimed to operate on a private “blockchain.” However, it lacked a genuine, verifiable blockchain. By March 2015, Greenwood and Ignatova began allocating non-existent OneCoins to members, dubbing them “fake coins.” This deception was further highlighted in email exchanges between the co-founders, where they acknowledged the absence of real mining operations.

Lavish Lifestyles Funded by Fraud

The funds amassed from the scheme were used to finance extravagant lifestyles. Greenwood, for instance, spent thousands on luxury resorts in Brazil and Thailand, designer goods, and even a private “OneCoin” airplane. He also invested in real estate across Spain, Dubai, and Thailand.

The Arrest and Extradition

Greenwood was apprehended in Koh Samui, Thailand, in July 2018 and was later extradited to the U.S. in October 2018. He has remained in custody since his arrest.

The Hunt for the Cryptoqueen

Ruja Ignatova, Greenwood’s co-conspirator, remains elusive. Charged with OneCoin-related fraud and money laundering in October 2017, she vanished after a trip from Bulgaria to Greece later that month. Ignatova was added to the FBI’s Top Ten Most Wanted List in June 2022, with a $100,000 reward for information leading to her capture.

OneCoin's Former Legal Head Pleads Guilty to Fraud and Money Laundering

Irina Dilkinska, the former “Head of Legal and Compliance” of OneCoin, has pleaded guilty to wire fraud and money laundering charges. This plea marks a crucial step in the ongoing investigation into the multi-billion dollar pyramid scheme that defrauded investors worldwide.

OneCoin, established in 2014 by Ruja Ignatova and Karl Sebastian Greenwood, was a company based in Sofia, Bulgaria. It was marketed as a revolutionary cryptocurrency but was, in reality, a fraudulent pyramid scheme operated through a global multi-level-marketing (MLM) network. Despite being revealed as a scam in 2015, OneCoin managed to generate significant revenues, amounting to over €4 billion between 2014 and 2016.

Dilkinska, the 42-year-old Bulgarian national, served as OneCoin’s head of legal and compliance. Contrary to her role, she facilitated the laundering of millions of dollars of illicit profits garnered by OneCoin. Among her notable activities was the transfer of $110 million in fraudulently obtained proceeds to a Cayman Islands entity.

Dilkinska pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, each carrying a maximum potential sentence of five years in prison. Her sentencing is scheduled for February 14, 2024, under the jurisdiction of U.S. District Judge Edgardo Ramos. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.

Ruja Ignatova, known as the “Cryptoqueen,” remains at large since her disappearance in 2017, shortly after a federal warrant was issued for her arrest. Ignatova was added to the FBI’s Top Ten Most Wanted List in 2022, with a $100,000 reward for information leading to her arrest. Co-founder Greenwood was convicted of fraud and money laundering, receiving a 20-year prison sentence and ordered to pay $300 million in restitution.

The guilty plea of Irina Dilkinska in the OneCoin case underscores the extent of the fraudulent activities within the cryptocurrency scheme. With significant financial losses and global impact, the case continues to be a stark reminder of the risks associated with unregulated digital currencies.