Former OneCoin Lawyer Sentenced to 4-Year Prison Term for Money Laundering in $4 Billion Cryptocurrency Fraud
Irina Dilkinska, the former head of legal and compliance for the OneCoin cryptocurrency project, has been sentenced to four years in prison for her involvement in money laundering. Dilkinska has admitted to her guilt and has been ordered to repay $118.4 million. However, she will not be deported and will serve a short period of supervised release. OneCoin’s co-founder and leader, Ruja Ignatova, also known as the “Cryptoqueen,” remains missing.
Dilkinska’s sentencing is a significant development in the ongoing legal battle surrounding the fraudulent OneCoin scheme. She has acknowledged her role in laundering millions of dollars from the scam. Her admission of fraud and conspiracy to launder money in November was a crucial step in the pursuit of justice against OneCoin.
Despite pleas from her defense for a lighter sentence, including the opportunity to return home to care for her children, Judge Edgardo Ramos remained firm. He emphasized that Dilkinska, being an intelligent individual, fully understood the seriousness of her actions. As part of her sentence, she is required to reimburse $118.4 million in restitution, highlighting the extensive financial harm caused by the fraudulent scheme.
OneCoin presented itself as a legitimate cryptocurrency but operated as a pyramid scheme, luring investors with incentives to recruit others into purchasing worthless OneCoin packages. With an estimated value of $4 billion, the scheme ensnared numerous unsuspecting investors.
At the center of the OneCoin scandal is Ruja Ignatova, the elusive “Cryptoqueen,” who disappeared in 2017 amidst growing suspicions surrounding the project. Ignatova, who is on the FBI’s Ten Most Wanted list, remains missing. Karl Sebastian Greenwood, a co-founder of OneCoin, was sentenced to 20 years in prison in September for his involvement in the scheme.
Prosecutors revealed that from 2014 to 2019, Dilkinska worked alongside Mark Scott, OneCoin’s US-based attorney, to launder $400 million through Cayman Islands companies. These companies were falsely presented as legitimate investments. Scott, a former attorney at Locke Lord LLP, was convicted of money laundering and sentenced to ten years in prison in January of the same year.
Dilkinska’s defense also raised concerns about her confinement at the Metropolitan Detention Center (MDC) in Brooklyn, describing the difficult conditions within the facility. While Judge Ramos acknowledged these circumstances, he showed some leniency in his sentencing.
Despite Dilkinska’s conviction, her case serves as a stark reminder of the far-reaching consequences of the OneCoin fraud. It underscores the importance of accountability in cryptocurrency and financial regulation.