Bulgarian Woman Charged For Role In Multi-Billion-Dollar Cryptocurrency Pyramid Scheme “OneCoin” And Extradited From Bulgaria To The United States | USAO-SDNY

Damian Williams, the United States Lawyer for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Industry Business of the Federal Bureau of Investigation (“FBI”), and Thomas Fattorusso, Special Agent in Cost of the Interior Earnings Provider, Felony Investigation, New York Field Place of work (“IRS-CI”), announced right now the unsealing of fees from IRINA DILKINSKA in relationship with her participation in the substantial OneCoin fraud scheme.  OneCoin, which began functions in 2014 and was based in Sofia, Bulgaria, marketed and marketed a fraudulent cryptocurrency by the similar identify through a worldwide multi-level-internet marketing (“MLM”) network.  As a consequence of misrepresentations manufactured about OneCoin, victims invested more than $4 billion around the world in the fraudulent cryptocurrency.  DILKINSKA was extradited from Bulgaria yesterday and will be introduced in advance of United States Magistrate Judge Sarah Netburn later on currently.

U.S. Attorney Damian Williams explained: “Irina Dilkinska, the intended Head of Authorized and Compliance for the OneCoin cryptocurrency pyramid plan, attained the actual opposite of her occupation title and allegedly enabled OneCoin to launder hundreds of thousands of dollars of unlawful proceeds via shell firms.  Dilkinska aided perpetuate a extensive-ranging plan with tens of millions of victims and billions of pounds in losses, and she will now encounter justice for her alleged crimes.”

FBI Assistant Director Michael J. Driscoll explained: “As alleged in the fees unsealed currently, Dilkinska aided her co-conspirator, Mark Scott, launder somewhere around $400 million in OneCoin proceeds whilst she was purportedly OneCoin’s Head of Legal and Compliance.  Additional, when she uncovered of Scott’s arrest, she ruined incriminating documents and sent a further co-conspirator incriminating messages.  As the actions introduced now should display, the FBI will carry on its willpower to provide alleged fraudsters like Dilkinska to justice.”

IRS-CI Unique Agent in Charge Thomas Fattorusso reported: “The costs from Irina Dilkinska are the consequence of the remarkable investigative function of our federal and global legislation enforcement associates.  People who dedicate fraud are place on see currently that IRS Prison Investigation is dedicated to keeping them accountable no make any difference where they are located.”

In accordance to the allegations in the Superseding Indictment and other filings and statements made in court:[1]

In 2014, RUJA IGNATOVA, a/k/a “the Cryptoqueen,” and KARL SEBASTIAN GREENWOOD co-started OneCoin,[2] a business dependent in Sofia, Bulgaria, that marketed a purported cryptocurrency by the identical name, which was in reality a fraudulent pyramid scheme.  OneCoin operated as a Multilevel marketing community by way of which members received commissions for recruiting other individuals to invest in cryptocurrency deals.  This Mlm construction influenced fast progress of the OneCoin member network.  Certainly, according to OneCoin’s marketing materials, in excess of three million men and women invested in fraudulent cryptocurrency packages.  OneCoin records show that, in between the fourth quarter of 2014 and the fourth quarter of 2016 by itself, OneCoin created €4.037 billion in product sales earnings and gained “profits” of €2.735 billion.

DILKINSKA was the purported Head of Lawful and Compliance for OneCoin, but relatively than making sure that OneCoin complied with the law, DILKINKSA assisted in the development and administration of shell businesses in buy to launder OneCoin proceeds and to hold house belonging to IGNATOVA.  For instance, in 2016 and 2017, DILKINSKA served co-conspirator MARK SCOTT, a former equity companion at a popular worldwide legislation agency, launder around $400 million in OneCoin proceeds by means of a collection of fake Cayman Islands financial commitment resources operated by SCOTT.  Among the other points, DILKINSKA utilized a enterprise named B&N Consult EEOD, which was falsely explained as offering “proprietary consulting expert services, help and application solutions” to its consumers and as producing €200 million in 2015 by 2016, to disguise the transfer of hundreds of thousands of bucks as purported “investments” into SCOTT’s resources.  In actuality, B&N was a shell enterprise that did not produce legitimate earnings and was utilized by DILKINSKA to launder OneCoin proceeds.  In or about September 2018, DILKINSKA uncovered of SCOTT’s arrest in relationship with his laundering of OneCoin proceeds.  Shortly thereafter, DILKINSKA burned incriminating paperwork, despatched co-conspirator KONSTANTIN IGNATOV a textual content information with a website link to a newspaper short article about the arrest, and then wrote a series of texts, like, “See this!!!!!” “Something is going on!!!!!” and “If this is legitimate I will need the mega legal professionals for whom [co-conspirator FRANK SCHNEIDER] was chatting!!!”

On October 12, 2017, IGNATOVA was charged with OneCoin-connected fraud and revenue laundering prices in the United States District Court for the Southern District of New York, and a federal warrant was issued for her arrest.  On October 25, 2017, IGNATOVA traveled on a professional flight from Sofia, Bulgaria, to Athens, Greece, and has not been viewed publicly considering that.  IGNATOVA was added to the FBI’s Best Ten Most Required List in June 2022.  The FBI is presenting a $100,000 reward for details foremost to IGNATOVA’s arrest.

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DILKINKSA, 41, of Sofia, Bulgaria, has been charged with a person count of conspiracy to commit wire fraud, which carries a highest probable sentence of 20 many years in jail, and a person rely of conspiracy to dedicate money laundering, which carries a maximum possible sentence of 20 a long time in prison.

The highest prospective sentences are recommended by Congress and are provided below for informational reasons only, as any sentencing of the defendant will be determined by a judge.

Mr. Williams praised the outstanding investigative work of the IRS-CI and the FBI, which jointly conducted this investigation with Specific Agents from the U.S. Attorney’s Business.  Mr. Williams also thanked the United States Marshals Services, the Justice Department’s Place of work of Worldwide Affairs, and Bulgarian authorities.

If you have any information and facts about IGNATOVA’s whereabouts, remember to make contact with your nearby FBI business or the closest American Embassy or Consulate.  Ideas can be claimed anonymously and can also be reported on the web at strategies.fbi.gov.

The situation is currently being prosecuted by the Office’s Elaborate Frauds and Cybercrime Device. Assistant U.S. Lawyers Christopher J. DiMase, Nicholas Folly, Juliana N. Murray, and Kevin Mead are in demand of the prosecution.

The expenses contained in the Indictment are simply accusations, and the defendant is presumed harmless unless of course and right until verified guilty.