A top executive of fraudulent cryptocurrency scheme OneCoin will spend years behind bars for her role in the multi-level marketing (MLM) scam that has defrauded victims worldwide of billions.
OneCoin, which was co-founded in 2014 by so-called crypto queen Ruja Ignatova and Karl Sebastian Greenwood, promised to pay commissions to members who recruited people to buy fraudulent cryptocurrency packages.
OneCoin’s promotional material claims that more than three million people invested in the cryptocurrency packs, helping the company generate $4.38 billion in sales revenue and $2.96 billion in profits between 2014 and 2016.
In a statement released Wednesday, the Justice Department said U.S. District Judge Edgardo Ramos sentenced Irina Dilkinska, OneCoin’s chief legal and compliance officer, to four years in prison.
In November, Dilkinska pleaded guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering as a result of her involvement with OneCoin.
Prosecutors say that instead of ensuring OneCoin complies with the law, the 42-year-old helped the company launder money, including $110 million in fraudulent proceeds transferred to a Cayman Island entity.
Says US Attorney Damian Williams:
“Irina Dilkinska’s involvement in OneCoin’s sprawling pyramid scheme was a blatant violation of conduct. Instead of upholding the law and embracing her position as head of Legal and Compliance, she facilitated and committed money laundering, aiding the exploitation of millions of victims. As Dilkinska learned today, this Office will hold every perpetrator of the OneCoin scheme accountable, no matter where he or she hides.”
In addition to the four-year prison sentence, the Bulgarian is ordered to forfeit $111,440,000. She will also be subject to one month of supervised release.
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