Karl Sebastian Greenwood, one of the masterminds behind the Onecoin pyramid scheme, recently used a contraband mobile phone to move at least $20 million while holed up in a prison in the United States, an attorney for one of the scheme’s victims has said.
Onecoin Mastermind takes advantage of regulatory failures
Lawyer representing Onecoin scam victims Jonathan Levy alleged that jailed pyramid scheme co-leader Karl Sebastian Greenwood recently moved at least $ 20 million that he said was stolen from investors .
In a statement released on November 24, 2021, Levy explains how Greenwood, who is currently detained at Manhattan Metropolitan Correctional Center, was able to pull off the transfer. He said Greenwood was aided by a network of lawyers and a smuggling cell phone.
The lawyer also said the failure of the SEC and other regulators to confiscate assets and the 230,000 bitcoins stolen from Onecoin is aiding Greenwood’s cause while making it even more difficult for victims to recover their money. He explained:
I am shocked and dismayed that there has been no attempt to confiscate OneCoin assets. We know that vast amounts of cash, real estate, and cryptocurrency have been unlawfully obtained. The brazen acts of Karl Sebastian Greenwood from his prison cell only confirm our worst fears that with each passing day billions of dollars in assets will be placed with no hope of recovery.
Contraband Cell Phone
Using numerous Powers of Attorney that were issued in Dubai, Greenwood and Ruja Ignatova, another key mastermind behind the Onecoin pyramid scheme, have successfully managed to get banks to unfreeze bank accounts that held hundreds of millions of dollars. Greenwood then allegedly used a cell phone that is now in the possession of US law enforcement to execute the judgment remotely.
Meanwhile, Levy said he hopes the release of the information about some of Greenwood’s acts while in prison will force regulators in the United States, Bulgaria, and Dubai to finally act against the masterminds.
