A lawyer who is believed to have laundered money associated with the OneCoin crypto scam is currently standing trial in New York. Mark Scott allegedly used offshore investment vehicles to take as much as $400 million out of the US on behalf of the company.
OneCoin is one of the largest examples of a cryptocurrency scam to date. Estimates put the total figure stolen from investors at more than $3 billion.
Suspected Crypto Scam Launderer Stands Trail in New York
According to a report by BBC News, Mark Scott was arrested a little over a year ago for his involvement with OneCoin. The former partner at the law firm Locke Lord faces charges of conspiracy to commit money laundering and bank fraud for his apparent role in the OneCoin crypto scam. The defendant pleaded not guilty.
The trial of Mark Scott, the lawyer accused of laundering $400 million of the proceeds from the OneCoin cryptocurrency “scam”, has begun in New York.https://t.co/D82fc7ts2q
— Graham Cluley (@gcluley) November 5, 2019
Scott is believed to have used corporate accounts at the Bank of Ireland and investment funds, as well using money to buy a yacht, three homes, and a high-end super car in an effort to clean money on behalf of those behind OneCoin. The prosecutors highlight one investor who sent thousands of dollars to the fraudulent crypto asset company. This money was sent on to one of Scott’s offshore investment vehicles, known as the “Fenero Funds”.
Scott’s legal team reportedly highlighted the fact that the defendant had previously attempted to discover if OneCoin was a scam or not. A colleague assigned to researching the company concluded it was legitimate.
The defendant’s legal experts surmised the case from their point of view:
“The central issue at trial will be whether or not Mr Scott knew OneCoin was operating a criminal scheme.”
The OneCoin scam is thought to have generated in excess of $3 billion. Those behind it sold plagiarised educational packages about crypto trading and gave away shares that would allow members to generate OneCoin mined by the firm. New York state attorneys described the nature of the company in one of the court filings:
“OneCoin used the success story of Bitcoin to induce victims to invest under the guise that they, too, could get rich through their investments.”
Others behind the OneCoin scam were also arrested earlier this year. These include one of its main instigators, Konstantin Ignatov. However, despite charges against many key members, the Bulgaria-based company still operates and says it has done nothing wrong. In a recent statement to the BBC, the company wrote:
“OneCoin verifiably fulfils all criteria of the definition of a cryptocurrency… Our partners, our customers and our lawyers are fighting successfully proceedings against OneCoin. We are sure that the vision of a new system on the basis of a financial revolution will be established.”
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