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OneCoin official pleads guilty to fraud, money laundering charges

EditorVenkatesh Jartarkar
Published 09/11/2023, 20:04

Today, Ex-OneCoin official Irina Dilkinska pled guilty to wire fraud and money laundering in a Manhattan federal court. The charges stem from her involvement in the notorious OneCoin pyramid scheme that originated from Sofia, Bulgaria in 2014. The scam leveraged a multi-level-marketing network to defraud victims globally, generating €4.037 billion in sales revenue and €2.735 billion in profits between 2014 and 2016.

Dilkinska, who served as the 'Head of Legal and Compliance' for OneCoin, played a pivotal role in laundering millions of dollars of illicit profits. She notably transferred $110 million in fraudulently obtained proceeds to an entity in the Cayman Islands. Each charge against Dilkinska carries a maximum potential sentence of five years. Her sentencing is set for February 14, 2024.

OneCoin's fraudulent operation resulted in substantial investor losses, with Dilkinska's actions contributing to $4 billion in damages. The company used aggressive multi-level marketing strategies to amass three million investors but was ultimately exposed as a scam selling counterfeit cryptocurrency packages.

The case also underscores the ongoing search for co-founder Ruja Ignatova, aka ‘the Cryptoqueen.' After being charged with related fraud and money laundering charges in 2017, Ignatova disappeared following a flight from Sofia to Athens. The FBI has since listed her on the Top Ten Most Wanted List and offers a $100,000 reward for information leading to her arrest.

The fallout from the OneCoin scandal has prompted calls for better oversight and consumer protection in the cryptocurrency market. This case serves as a stark reminder of the potential for fraud within the sector and emphasizes the necessity for stringent cryptocurrency regulation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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