Mark Scott, a lawyer known for participating in the OneCoin crypto scam, has been sentenced to 10 years in prison by a U.S. court after he was found guilty on two counts related to money laundering and bank fraud.
The prosecutor put forward the charges in November of 2019. On 25 January 2023, A U.S. federal judge announced the verdict in which Scott was given the punishment of spending ten years behind bars.
OneCoin was a notorious cryptocurrency scam, operated deceptively from 2014 to 2017, in which the company presented itself as a legitimate digital currency while, in reality, it was functioning as an extensive Ponzi and pyramid scheme.
The scheme falsely claimed to be a mineable cryptocurrency utilizing blockchain technology, but it lacked any genuine value or underlying technology under the surface.
The organizers manipulated the price artificially by disregarding market forces. Instead of focusing on a tangible product or service, OneCoin heavily relied on a multi-level marketing (MLM) structure, where members earned commissions through recruiting new investors rather than engaging in actual trading or creating value.
To create an illusion of activity, the company simulated internal transactions within its closed system, manipulating the recorded numbers without any connection to a real blockchain or mining process.
Among the key figures involved was Ruja Ignatova, also known as the “Cryptoqueen”. She co-founded OneCoin and served as a popular figurehead with a charismatic personality.
When the curtain fell, and the firm was exposed as a Ponzi scheme, she vanished mysteriously in 2017 and is currently on the FBI’s Ten Most Wanted Fugitives list.
The other co-founder, Sebastian Greenwood, played a crucial role in marketing and logistics. He pleaded guilty to wire fraud and money laundering in September 2023 and received a 20-year sentence.
The court also ordered him to pay $300 million in restitution to the victims of the Ponzi scheme.
The fallout from the scam was substantial, with fraud against over 3.5 million people worldwide estimated to result in illicit gains exceeding $4 billion.
Many victims, particularly in developing countries, experienced significant financial losses. Law enforcement agencies in various countries, including the US, Bulgaria, and China, conducted investigations and prosecuted OneCoin operators.
Several key figures, including Greenwood, faced legal consequences for participating in the fraudulent cryptocurrency scheme. Federal prosecutors described the incident as one of the largest international fraud schemes ever.
As per Inner City Press’s report on January 25, Judge Edgardo Ramos from the U.S. District Court for the Southern District of New York has sentenced Mark Scott to a 10-year prison term for his involvement in laundering millions of dollars through OneCoin.
He was convicted in November 2019 for conspiracy to commit bank fraud and conspiracy to commit money laundering and has been awaiting sentencing from that time.
Prosecutors advocated for a minimum 17-year sentence, while his legal team proposed a five-year term. During the sentencing, Scott reportedly expressed sympathy for the victims of the OneCoin scheme.
The former chief compliance officer at OneCoin, Irinia Dilkinska, pleaded guilty to two felony counts in November 2023. Her sentencing is scheduled for 14 February 2024.
Reportedly, Mark Scott’s legal team has expressed their intention to seek bail while awaiting an appeal for the recent sentencing decision.
Scott has joined a list of individuals connected to crypto firms who may potentially face extended prison terms for their alleged participation in money laundering or fraud schemes.
The list includes some of the most notable figures associated with the cryptocurrency market.
Former FTX CEO Sam Bankman-Fried, former Binance CEO Changpeng Zhao, and former Celsius CEO Alex Mashinsky are the popular names waiting for decisions by the U.S. courts on their respective futures if they are found guilty of the crimes they are charged with.
