Federal judge sentences lawyer to 10 years in OneCoin money laundering case

In a significant legal development, Mark Scott, a lawyer implicated in money laundering through the infamous OneCoin cryptocurrency scheme, has been sentenced to 10 years in federal prison. The decision was handed down by Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York on January 25.

Scott’s role in OneCoin scheme

Mark Scott’s conviction stems from his involvement in conspiring to commit bank fraud and money laundering related to the OneCoin cryptocurrency. He was found guilty in November 2019 and has been awaiting sentencing. Prosecutors sought a minimum sentence of 17 years for Scott, while his defense team recommended a more lenient sentence of five years.

Scott’s sentencing is a significant development in the OneCoin case, where he was charged with laundering millions of dollars at the direction of OneCoin’s co-founder, Ruja Ignatova, known as the “Cryptoqueen.” Ignatova, who co-founded the cryptocurrency firm with Karl Sebastian Greenwood in 2014, remains large.

Legal outcomes for OneCoin figures

This recent sentencing follows a series of legal actions against individuals connected to the OneCoin scheme. Karl Sebastian Greenwood, another key figure in the case, was sentenced to 20 years on fraud and money laundering charges in September 2023. He was also ordered to pay $300 million in restitution to OneCoin victims.

Irinia Dilkinska, the former chief compliance officer at OneCoin, pleaded guilty to two felony counts in November 2023, with her sentencing scheduled for February.

Before his sentencing, Mark Scott expressed sympathy for the victims of the OneCoin scheme. His defense team intends to request bail pending an appeal of the sentencing decision, indicating that the legal battle may not end.

Wider implications for the crypto industry

Mark Scott is among several figures associated with cryptocurrency firms who have faced legal consequences for their alleged involvement in money laundering or fraud schemes. 

This case, along with others involving prominent crypto industry figures such as Sam Bankman-Fried, former CEO of FTX, Changpeng Zhao, former CEO of Binance, and Alex Mashinsky, former CEO of Celsius, underscores the increasing scrutiny and legal actions targeting individuals within the crypto space.