Jailed Onecoin Mastermind Accused of Using Contraband Mobile Phone to Move $20 Million – Regulation Bitcoin News

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 Taking Advantage of Regulators’ Failures

The lawyer representing victims of the Onecoin scam, Jonathan Levy, has alleged that the pyramid scheme’s jailed co-mastermind, Karl Sebastian Greenwood, recently moved at least $20 million which he insists was stolen from investors.

Levy, in a statement, explains how Greenwood (currently detained at Manhattan Metropolitan Correctional Center) was able pull off the transfer. Greenwood was assisted by lawyers and a contraband cell phone, he said.

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:

OneCoin’s assets are still being held by the government. This shocks me and makes my heart sink. It is well-known that large amounts of cryptocurrency, cash and real estate have been illegally obtained. Karl Sebastian Greenwood’s brazen act from jail confirms our worst fears. With each passing day, billions more assets are put beyond recovery.

Contraband Mobile Phone

Greenwood, Ruja Ignatova and another mastermind behind Onecoin, successfully obtained power of attorney in Dubai. They were able to obtain banks to free up bank accounts that contained hundreds of million dollars. Greenwood then allegedly used a cell phone in U.S. possession to remotely perform judgment.

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.

Is it true that regulators did not do enough to assist victims of Onecoin fraud? Let us know your thoughts in the comment section below.

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