OneCoin Fraudster Avoids Prison for Laundering Scam Proceeds

A man recruited to help launder a portion of $400 million from the multibillion-dollar OneCoin cryptocurrency fraud avoided a prison term for his role in a scheme, but agreed to forfeit $2.1 million.

David Pike, 62, pleaded guilty in October to conspiracy to commit bank fraud. Prosecutors said Pike was a lower-level figure in the scheme, which was led by so-called cryptoqueen Ruja Ignatova. But they claimed he played a key role in deceiving banks and other financial institutions about the origin of the funds, calling them investor capital.

U.S. District Judge Edgardo Ramos Tuesday rejected prosecutors’ request that Pike ...