Montenegro Arrests FutureNet Co-Founder Roman Ziemian for $21M Crypto Fraud
Montenegrin authorities have apprehended Roman Ziemian, Co-Founder of the controversial crypto scheme FutureNet, on charges linked to a $21 million fraud. Ziemian was arrested in Podgorica, Montenegro’s capital, where he was allegedly living under a false identity. This development follows investigations and legal actions across multiple countries.
Arrest Details and Charges
On August 19, 2024, Montenegro’s Police Directorate announced the arrest of Roman Ziemian. The arrest followed an international warrant issued by South Korea and Poland, accusing Ziemian of fraud, money laundering, and theft. According to the police statement, Ziemian was found using a fake identity and had several items and devices seized that are believed to be connected to his alleged criminal activities.
South Korean authorities have indicated that Ziemian could face life imprisonment if convicted. Ziemian’s legal troubles are compounded by his history with FutureNet, a company he co-founded with Stephan Morgenstern in 2018. The firm marketed itself as a multilevel marketing enterprise with a cryptocurrency, FuturoCoin (FTO), which has since become nearly worthless.
Background on FutureNet
FutureNet’s promotional strategies and subsequent collapse have been scrutinised. In March 2019, Poland’s Office of Competition and Consumer Protection (UOKiK) warned that FutureNet might operate a pyramid scheme. The scheme involved selling “participation packages” priced between $10 and $10,000 and promising to recruit new investors.
The situation began to unravel in mid-2020 when South Korean authorities launched an investigation following complaints from nearly 950 individuals who claimed significant financial losses. The scheme’s fraudulent nature became evident as the value of FuturoCoin plummeted.
Legal Proceedings and Comparisons
Ziemian’s arrest mirrors that of Do Kwon, co-founder of Terraform Labs, who is also detained in Montenegro facing similar charges. Kwon’s extradition to South Korea has been postponed, and legal reviews about the conditions of his extradition are ongoing Both Kwon and Ziemian face the possibility of life imprisonment if convicted in South Korea.
Ziemian will soon appear before the High Court in Podgorica, where a decision regarding his extradition will be made. His previous arrest in Italy in October 2022, followed by his escape from house arrest, highlights his case’s complexity and international dimension. Morgenstern, his business partner, was also arrested and later recaptured in Albania after fleeing Greece.
Conclusion
The arrest of Roman Ziemian marks a significant development in the ongoing investigation into FutureNet and its alleged fraudulent activities. As the legal proceedings unfold, the international community remains attentive to the outcomes, particularly given the high-profile nature of similar crypto fraud cases.
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