Financial frauds within the cryptocurrency world are nothing new, with male figures like Sam Bankman-Fried and Do Kwon frequently in the spotlight. However, several high-profile women have also been implicated in serious crypto-related crimes. Here are four women who committed notorious financial frauds involving cryptocurrencies, leaving a lasting impact on the industry.
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1. Ruja Ignatova: The “CryptoQueen” Behind OneCoin
Ruja Ignatova, self-dubbed the “CryptoQueen,” co-founded the fraudulent cryptocurrency OneCoin in 2014 alongside Karl Sebastian Greenwood. Based in Bulgaria, OneCoin became one of the most notorious Ponzi schemes in cryptocurrency history, defrauding investors of approximately $4.5 billion.
Ignatova, a German citizen born in Bulgaria and an Oxford-educated lawyer, vanished in 2017 while en route to Athens, escaping authorities. She remains on the FBI’s Ten Most Wanted list, with a $5 million reward for any information leading to her arrest. Numerous theories about her fate circulate, including suspicions that she may have been killed by a drug trafficker.
2. Caroline Ellison: The Fall of Alameda Research
Caroline Ellison, former CEO of Alameda Research, played a key role in the collapse of cryptocurrency exchange FTX, one of the largest financial fraud cases in recent history. Ellison, who was also romantically involved with FTX founder Sam Bankman-Fried, was convicted of financial fraud and sentenced to 24 months in prison in 2024.
A Stanford graduate, Ellison pleaded guilty to seven counts of conspiracy, including wire fraud, securities fraud, and money laundering. As a star witness for the prosecution, she helped convict Bankman-Fried, who was sentenced to 25 years in prison for his role in the FTX scandal, which saw $8 billion in customer funds vanish.
3. Heather Morgan: The “Crocodile of Wall Street”
Heather Morgan, known for her eccentric online persona and rap career, was arrested alongside her husband, Ilya Lichtenstein, in February 2022 for their involvement in laundering approximately 120,000 Bitcoin stolen during the 2016 Bitfinex hack. The stolen Bitcoin was valued at $3.6 billion at the time of their arrest.
Morgan pleaded guilty to charges of money laundering in 2023 and is currently out on bail, awaiting sentencing. Her sentencing is scheduled for November 8, 2024, where she faces up to five years in prison.
4. Jian Wen: A $6 Billion Bitcoin Fraud in China
Jian Wen, 42, was convicted of laundering Bitcoin as part of a massive $6 billion fraud scheme in China. Arrested in 2018, Wen was sentenced to six years and eight months in prison earlier in 2024. She had been involved in converting stolen Bitcoin into cash and purchasing luxury assets like properties and jewelry.
Wen claimed to be unaware of the illegal origins of the funds, stating that she was merely managing a Bitcoin wallet for her boss and acting for the well-being of her son. Despite her claims of innocence, the investigation revealed her deep involvement in the laundering operation.
