By
Svetlana Soroka
April 30th, 2024
Irina Dilkinska, former OneCoin executive, received a four-year sentence for her role in laundering funds from the $4 billion crypto scam, despite her plea for leniency due to her children and harsh jail conditions.
Irina Dilkinska, the former chief legal and compliance officer for OneCoin, received a four-year prison sentence on April 3rd, 2024, for her involvement in a colossal $4 billion cryptocurrency fraud scheme. Judge Edgardo Ramos of the Manhattan District Court additionally ordered Dilkinska to surrender over $111 million in illegally acquired profits.
This sentencing marks the latest development in the saga involving OneCoin, a scheme exposed as a Ponzi scheme that never had a real cryptocurrency. Instead It luring investors with promises of high returns for buying educational packages that supposedly came with “OneCoins”.
Dilkinska admitted her involvement in a fraudulent scheme during November 2023, facing charges of wire fraud conspiracy and money laundering. Despite her plea to evade imprisonment and return to Bulgaria to care for her two small children, Judge Edgardo Ramos denied her request.
Dilkinska’s Role in OneCoin’s Pyramid Scheme
OneCoin, promoted by a Bulgarian firm, was aggressively marketed as a revolutionary digital asset. However, prosecutors successfully claimed that OneCoin was merely a pyramid scheme pretending to be a valid investment opportunity. Dilkinska, a Bulgarian lawyer with international legal experience, allegedly oversaw the daily operations of this fraudulent enterprise.
According to court documents, Dilkinska had a central part in money laundering activities for OneCoin. Prosecutors allege she managed the shift of $110 million in illegally obtained funds to a shell company based in the Cayman Islands. Such action helped hides the illicit source of finances, perpetuating the criminal enterprise.
Judge Ramos acknowledged the harsh conditions at the federal Metropolitan Detention Center in Brooklyn, where Dilkinska had been arrested since her extradition from Bulgaria. He considered her year of pre-trial confinement and the 16 months she spent in Bulgaria before extradition, reducing her overall sentence.
OneCoin Legal Fallout
Dilkinska’s sentencing marks a notable development in the OneCoin case. Earlier, in January 2024, Mark Scott, previously a partner at a reputable U.S. law firm, received 10 years for laundering $400 million. Moreover, last September, Karl Sebastian Greenwood, a co-founder of OneCoin, sentenced to 20 years in prison and forfeited $300 million.
The scheme’s other founding member, Ruja Ignatova, known as the “Cryptoqueen”, continues to evade capture. In 2022, the FBI incorporated Ignatova onto their Ten Most Wanted List, and law enforcement agencies persistently pursue her elusive whereabouts.
The OneCoin scandal highlights the risks in unregulated crypto markets. Although blockchain holds promise, loopholes invite fraud, costing investors dearly. As crypto laws develop, stringent oversight protects consumers from scams like OneCoin.
