The U.S. Court of Appeals has upheld the convictions of OneCoin fraudsters Mark Scott and Karl Sebastian Greenwood, rejecting their appeals on May 14, 2025. Both were key figures in the notorious OneCoin cryptocurrency scam, which defrauded investors globally through a multi-level marketing scheme.
Sebastian Greenwood’s Appeal Denied
Currently serving a 20-year sentence since September 2023, Greenwood argued two points in his appeal:
- The court wrongly calculated his sentence by including both domestic and foreign losses from the OneCoin scam.
- His 240-month sentence was unreasonably harsh.
The Appeals Court dismissed these claims, stating that foreign wire transactions were part of the same fraudulent scheme as domestic ones, justifying their inclusion in sentencing calculations. On the sentence’s severity, the court found no abuse of discretion, noting the scheme’s massive scale, its targeting of vulnerable victims, and Greenwood’s significant profits. The court also acknowledged mitigating factors, such as harsh post-arrest conditions in 2018, but ruled the sentence fair and not “shockingly high.”
Mark Scott’s Appeal Rejected
Sentenced to 10 years in January 2024, Scott raised four arguments in his appeal:
- The court erred by denying a new trial based on alleged perjury by Konstantin Ignatov.
- The court improperlyEl exclusion of hearsay evidence (emails) and quashing of a Neil Bush subpoena were improper.
- Insufficient evidence supported his money laundering conspiracy conviction.
- Insufficient evidence backed his bank fraud conspiracy conviction.
The Appeals Court found no merit in these claims. It ruled Ignatov’s testimony had no significant impact on the jury’s judgment. The excluded emails were deemed hearsay, irrelevant to Scott’s state of mind, and Neil Bush’s subpoena was properly quashed, as his testimony would not clarify Scott’s understanding of the fraudulent CryptoReal transaction.
On the money laundering charge, evidence showed OneCoin targeted U.S. investors, with American victims wiring funds domestically to OneCoin accounts. For bank fraud, the CryptoReal transaction and Armenta-related evidence proved Scott conspired to mislead banks about OneCoin funds. The court affirmed both convictions, finding ample evidence of domestic wire use and fraudulent intent.
Current Status
Greenwood remains incarcerated, with his sentence unchanged. Scott, released pending appeal in April 2024, now faces a surrender date following the DOJ’s May 14 request. On the same day, Scott’s attorney cited “ongoing medical issues” to delay his return to prison, claiming new treatments are scheduled. However, no explanation was provided on why treatment cannot occur in custody. Scott has until May 19, 2025, to submit further details on his condition.
Background on OneCoin
OneCoin, orchestrated by Ruja Ignatova and others, was a global Ponzi scheme disguised as a cryptocurrency, defrauding investors of billions. Scott and Greenwood played central roles, with Scott laundering funds through sham investment vehicles like the Fenero Funds, and Greenwood promoting the scheme worldwide.