Man Pleads Guilty for OneCoin Ponzi Scheme Role

A Florida resident, David Pike, aged 61, has pleaded guilty to conspiracy to defraud a bank in the $4 billion OneCoin Ponzi scheme.

According to prosecutors in a telephone hearing held in a Manhattan federal court, Pike conspired with former Locke Lord LLP attorney Mark Scott to launder $400 million, a portion of the OneCoin Ponzi scheme. Due to his role, he could be sentenced to around 5 years imprisonment.

In 2019, Mark Scott also faced conviction for money laundering and bank fraud conspiracy. Prosecutors asserted at the time that he, Scott, established a fake investment fund to process money from Ruja Ignatova, the founder of OneCoin, who has gone missing since the project came under scrutiny since 2017. His brother pleaded guilty and also testified against Scott.

OneCoin came like every other projects but was able to quickly prove itself as a Ponzi scheme. It claimed to be a cryptocurrency with a private blockchain and a platform for crypto education. The project had three programs, such as One Life, One Academy and One World Foundation.

Through One Life and One Academy, the project sold educational packages, which was its main business. However, the One World Foundation was a children’s charity accepting donations through several means. Subscribers to any of the packages would have the opportunity of mining OneCoin.

Surprisingly, the tokens were unable to serve any purpose for their holders as it turned out to be a scam. Per available information, the scam project generated not less than $4 billion in revenue between the years it operated and had over 3 million members.

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