Ex-OneCoin Legal Chief Jailed for Four Years in Crypto Pyramid Scheme

Irina Dilkinska, the former legal head of the multibillion-dollar OneCoin fraud scheme, was sentenced to four years in prison and ordered to forfeit $111 million as restitution. Dilkinska pleaded guilty to wire fraud and money laundering charges, acknowledging her involvement in laundering millions of dollars. The sentence adds to the list of executives convicted for their roles in the Ponzi scheme, including co-founder Karl Sebastian Greenwood and lawyer Mark Scott. The founder of OneCoin, Ruja Ignatova, remains a fugitive.

Former Head of OneCoin Legal Department Sentenced to Four Years in Prison for Crypto Pyramid Scheme Involvement

Manhattan, New York - Irina Dilkinska, the former head of legal and compliance for the notorious OneCoin crypto pyramid scheme, has been sentenced to four years in prison for her role in laundering millions of dollars. The sentence was handed down on April 3, 2024, by United States District Judge Edgardo Ramos.

In addition to her prison term, Dilkinska will also serve one month of supervised release and forfeit $111 million as restitution. She had pleaded guilty to wire fraud and money laundering charges in November 2023, each of which carried a maximum penalty of five years in prison.

A Ponzi Scheme of Epic Proportions

OneCoin was a multibillion-dollar pyramid scheme that operated from 2014 to 2016. Founded by Ruja Ignatova, known as the "Cryptoqueen," and Karl Sebastian Greenwood, the scheme lured investors with promises of guaranteed returns through a cryptocurrency called "OneCoin."

However, investigations revealed that OneCoin lacked a functional blockchain and instead operated as a classic pyramid scheme, with new investors' funds used to pay earlier investors. The scheme generated over $4.3 billion in revenue, with profits exceeding $3 billion between 2014 and 2016.

Dilkinska's Role in the Fraud

As head of legal and compliance, Dilkinska played a pivotal role in perpetuating the OneCoin scheme. She advised the company on legal matters, including the creation of contracts and the structure of OneCoin's business operations. She also helped conceal the true nature of the scheme from investors and regulators.

In her sentencing remarks, Judge Ramos described Dilkinska as "a woman of considerable intelligence who should have been aware of the ramifications of her actions." He expressed bewilderment that she did not disengage from the scheme before its collapse.

Joining the Ranks of Imprisoned OneCoin Executives

Dilkinska joins several other OneCoin executives who have been sentenced to prison for their involvement in the fraud. In September 2023, Greenwood received a 20-year prison sentence for fraud and money laundering, while Mark Scott, a lawyer who laundered $400 million for OneCoin, was sentenced to ten years in January 2024.

Cryptoqueen Still at Large

Despite the convictions of its executives, the mastermind behind OneCoin, Ruja Ignatova, remains at large. She disappeared in 2017 after a federal warrant was issued for her arrest. Speculations about her fate have circulated, including suggestions that she was killed or that she had plastic surgery to alter her appearance.

Lessons Learned from the OneCoin Scandal

The OneCoin scandal serves as a cautionary tale about the risks associated with investing in unregulated cryptocurrencies. Investors should be wary of schemes that promise guaranteed returns or that lack transparency about their underlying technology.

Regulators and law enforcement agencies must also remain vigilant in pursuing individuals and organizations involved in cryptocurrency-related fraud. The sentencing of Irina Dilkinska sends a strong message that those who engage in such schemes will be held accountable for their actions.