The Southern District of New York court has pronounced a significant verdict, sentencing Bulgarian national Irina Dilkinska to a four-year term in prison for her integral role in the web3 initiative OneCoin and its associated cryptocurrency.

According to an official statement released by the United States Department of Justice, Dilkinska is also obligated to forfeit a staggering sum of $111,440,000 and undergo one month of supervised release.

While serving as the project's Head of Legal and Compliance, Dilkinska was found to have actively facilitated money laundering and other financial transgressions. Notably, she orchestrated the transfer of $110 million in illicit OneCoin proceeds to an entity in the Cayman Islands.

In condemning Dilkinska's actions, U.S. Attorney Damian Williams emphasized the egregious nature of her involvement, denouncing it as a blatant disregard for legal obligations and a betrayal of trust. He remarked, "Irina Dilkinska's complicity in the sprawling OneCoin pyramid scheme represents a blatant violation of ethical conduct. Instead of upholding the law and fulfilling her duties as Head of Legal and Compliance, she actively engaged in money laundering, thereby aiding in the exploitation of millions of victims."

Official records of the project indicate that it managed to ensnare over 3 million participants, amassing a staggering sales revenue of nearly $4.4 billion (€4.037 billion) between the fourth quarters of 2014 and 2016. Victims, in total, invested more than $4 billion into OneCoin.

In a previous report by The Block, it was revealed that in November 2023, Dilkinska had pleaded guilty to charges linked to conspiracies of wire fraud and money laundering concerning her tenure at OneCoin.

The Department of Justice contends that OneCoin functioned as a global multi-level marketing scheme or "pyramid scheme," a controversial business model wherein sellers earn commissions for their sales and recruit new participants.

Founded by Ruja Ignatova, famously known as "the Cryptoqueen," and Karl Sebastian Greenwood, OneCoin's illicit activities have led to severe legal consequences. Greenwood received a 20-year prison sentence and was ordered to pay a hefty $300 million fine after pleading guilty to wire fraud and money laundering.

As for Ignatova, she has been on the FBI's most-wanted list since May 2022 and remains at large, evading capture.