OneCoin lawyer Mark Scott could face 17 years in US prison, new filings show

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Mark Scott, the disgraced lawyer who helped launder over $400 million for the mega digital asset scam OneCoin, should face at least 17 years behind bars for his role, United States prosecutors say in a recent filing.

Scott was first involved in OneCoin in 2015, a few months after meeting the scam’s founder, ‘Cryptoqueen’ Ruja Ignatova. They set up fake private equity investment funds in the British Virgin Islands, and over several months, he laundered about $400 million in connection with the global scheme and allegedly pocketed $50 million for his involvement.

In 2019, he was convicted of conspiracy to commit money laundering and conspiracy to commit bank fraud.

In a recent filing with the Southern District of New York, U.S. Attorney Damian Williams called on the court to dismiss Scott’s request for a five-year sentence and hand him at least 17 years behind bars.

The lawyer was aware that Ignatova and her accomplices were operating a scam, yet he chose to make laundering their money his “full-time job,” alleges Williams.

“The defendant engaged in incredibly serious and sophisticated criminal conduct, conduct for which he has failed to accept responsibility and for which he has not shown an ounce of remorse. His punishment must match the seriousness of his crime,” Williams stated in the filing.

After the OneCoin scheme blew up, Scott got arrested for his involvement and, months later, lost his license to practice law in New York and Florida. However, to fit his crime, the punishment must be harsh enough to send a message to others involved in similar operations, the Department of Justice (DOJ) asserts.

“Deterring would-be money launderers, who can often participate in schemes like this at a safe distance from the day-to-day operation of the fraud scheme itself, is critical. Without money launderers like Scott, schemes like the OneCoin scheme would falter and fail,” Williams told the Manhattan court.

If sentenced, he will join co-founder Karl Greenwood, who was sentenced to two decades in prison in September. Irina Dilkinska faces 10 years in prison after pleading guilty to money laundering and fraud charges in November. Irina was the chief compliance officer of the $4 billion scam and faces sentencing next month.

Meanwhile, Ruja Ignatova remains at large despite efforts by the Federal Bureau of Investigation (FBI) and Interpol to trace her. Some reports claim that she was killed years ago and tossed into the sea by a drug lord from her native Bulgaria with whom she had business ties.

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Ethereum, FTX and Tether—who have co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) players in the market.