In a significant legal development, Karl Greenwood, a key figure in the infamous OneCoin pyramid scheme, has been handed a stern 20-year prison sentence by a federal court in the Southern District of New York, as disclosed in an official statement from the attorney's office this Tuesday.

This verdict, pronounced by United States (US) District Judge Edgardo Ramos, also entails a substantial forfeiture of $300 million — an amount reflective of Karl's ill-gotten gains from the elaborate fraudulent enterprise.

His involvement in this scheme, which captivated the attention of global law enforcement, extends to a troubling network of collaborators, including the enigmatic figure known as the "Cryptoqueen," currently occupying a place on the FBI's notorious Top 10 Most Wanted list.

Collectively, they stand accused of orchestrating an audacious financial swindle that allegedly siphoned more than $4 billion (approximately £3.2 billion) from unsuspecting investors.

OneCoin, it appears, aimed to piggyback on the burgeoning success of Bitcoin, employing the allure of cryptocurrency to persuade investors that it represented the next unparalleled investment opportunity.

Yet, as investigators assert, the stark reality contrasted sharply with this enticing façade.

Unlike genuine cryptocurrencies, OneCoin was fundamentally devoid of any substantive value, conceived by him and his co-conspirator, Ruja Ignatova, as a fraudulent enterprise from its inception.

It was stated in the official statement that:

"In reality, unlike legitimate cryptocurrencies, OneCoin had no actual value and was conceived of by Greenwood and Ignatova as a fraud from day one"

The US Attorney's Office for the Southern District of New York did not mince words in its declaration, characterising their joint endeavours as "one of the largest fraud schemes ever perpetrated."

US Attorney Damian Williams expressed that:

"We hope this lengthy sentence resonates in the financial sector and deters anyone who may be tempted to lie to investors and exploit the cryptocurrency ecosystem through fraud."

This sentencing was delivered by a federal judge in Manhattan, and prosecutors highlight that many victims of the OneCoin scheme hailed from the New York region.

How Did The OneCoin Scam Came About?

Originating in Bulgaria in 2014, OneCoin presented itself as a legitimate cryptocurrency, enticing investors with promises of mining opportunities and the allure of tangible value.

However, behind the glossy facade, OneCoin lacked any traceable presence on the blockchain.

Instead, it operated as a pyramid scheme, its architects generously rewarding participants for enlisting fresh recruits.

Astonishingly, this elaborate ruse managed to defraud an estimated sum exceeding $4 billion, leaving a wake of over 3.5 million victims worldwide.

At the heart of this intricate web of deception stood Karl, aptly crowned as OneCoin's "global master distributor" and the orchestrator of a sprawling MLM (multi-level marketing) network that tirelessly promoted and peddled the fraudulent cryptocurrency.

His pivotal role garnered him a substantial share, amounting to 5% of OneCoin's monthly sales.

The wheels of justice began turning in 2018 when he was apprehended in Thailand and subsequently extradited to the US, where he awaited trial behind bars.

In a pivotal moment, he chose to plead guilty last December, confessing to charges of wire fraud and conspiracy to launder money, a stark admission of his complicity in the grand scheme.

Meanwhile, OneCoin's co-founder and enigmatic figurehead, Ruja, remains elusive, having eluded capture.

Her evasion of law enforcement has earned her a dubious distinction — a prominent spot on the FBI’s Most Wanted list.

The question remains: will the long arm of justice eventually catch up with the elusive CryptoQueen?