Key Points
- Irina Dilkinska, former OneCoin executive, has been sentenced to four years in prison for a $4 billion cryptocurrency fraud.
- The OneCoin scandal underlines the risks in unregulated cryptocurrency markets.
Irina Dilkinska, who previously served as the chief legal and compliance officer for OneCoin, was sentenced to a four-year prison term on April 3rd, 2024.
This was due to her involvement in a massive $4 billion cryptocurrency fraud.
Manhattan District Court Judge Edgardo Ramos further instructed Dilkinska to forfeit over $111 million in illegally obtained profits.
The OneCoin Scandal
This sentence is the most recent development in the ongoing OneCoin saga.
OneCoin was exposed as a Ponzi scheme that didn’t possess a real cryptocurrency, and instead, it deceived investors with promises of high returns on educational packages that allegedly came with “OneCoins”.
In November 2023, Dilkinska confessed to participating in the fraudulent scheme.
She was charged with wire fraud conspiracy and money laundering.
Despite her plea to avoid jail and return to Bulgaria to look after her two young children, Judge Ramos denied her request.
Dilkinska’s Role in the OneCoin Scheme
OneCoin, backed by a Bulgarian company, was aggressively promoted as a groundbreaking digital asset.
However, prosecutors successfully argued that OneCoin was nothing more than a pyramid scheme pretending to be a legitimate investment opportunity.
Dilkinska, a Bulgarian lawyer with international legal experience, is said to have managed the daily operations of this fraudulent business.
According to court documents, Dilkinska played a significant role in OneCoin’s money laundering activities.
Prosecutors claim she coordinated the transfer of $110 million in illegally obtained funds to a shell company in the Cayman Islands, effectively concealing the illicit source of the funds and enabling the criminal enterprise to continue.
Judge Ramos acknowledged the severe conditions at the federal Metropolitan Detention Center in Brooklyn, where Dilkinska had been held since her extradition from Bulgaria.
He took into account her year of pre-trial detention and the 16 months she spent in Bulgaria prior to extradition, which resulted in a reduced overall sentence.
The Legal Repercussions of OneCoin
Dilkinska’s sentencing is a significant milestone in the OneCoin case.
In January 2024, Mark Scott, formerly a partner at a reputable U.S. law firm, was sentenced to 10 years for laundering $400 million.
Additionally, in September, Karl Sebastian Greenwood, a co-founder of OneCoin, was sentenced to 20 years in prison and forfeited $300 million.
Ruja Ignatova, another founding member of OneCoin and known as the “Cryptoqueen”, remains at large.
In 2022, the FBI added Ignatova to their Ten Most Wanted List, and law enforcement agencies continue their relentless pursuit of her.
The OneCoin scandal serves as a stark reminder of the risks associated with unregulated cryptocurrency markets.
While blockchain technology offers potential, it also presents opportunities for fraud, which can result in significant losses for investors.
As regulations around cryptocurrency evolve, stricter oversight is necessary to protect consumers from scams like OneCoin.
