- FutureNet, co-founded in 2018, was flagged as a potential pyramid scheme.
- Roman Ziemian was arrested in Montenegro for allegedly running a $21M Ponzi scheme.
- Ziemian faces life imprisonment for fraud charges after escaping house arrest in Italy.
Montenegrin authorities have captured Roman Ziemian, the co-founder of FutureNet, a crypto project in connection with a $21M cryptocurrency fraud. The arrest happened on August 17 in Podgorica, the capital of Montenegro. It was reported that Ziemian was living under a false identity.
Roman Ziemian is accused of orchestrating an elaborate Ponzi scheme through FutureNet after 950 people claimed to have lost millions investing in it. The scheme promised significant returns. In addition, Poland’s Office of Competition and Consumer Protection (UOKIK) warned that it involved selling “participation packages” ranging from $10 to $1000. It claimed to come with profits, dependent on recruiting others to invest.
Further, South Korea and Poland had issued arrest warrants for Ziemian, accusing him of fraud, money laundering, and theft. Particularly, South Korean authorities have warned that he could face life imprisonment if convicted. Ziemian was previously arrested in Italy in 2022 but managed to escape while on house arrest.
Ziemian’s Arrest Highlights Intensifying Global Crackdown on Crypto Fraud
In contrast, FutureNet co-founded by Ziemian and Stephan Morgenstern in 2018, was promoted as a multilevel marketing scheme with an associated cryptocurrency, FuturoCoin (FTO). However, the token has since lost significant value. Poland’s Office of Competition and Consumer Protection had flagged FutureNet as a potential pyramid scheme in 2019.
The arrest of Ziemian highlights the recent case of Terraform Labs co-founder Do Kwon, who is also being held in Montenegro. Ziemian’s legal representatives have denied the allegations, saying that the accusations are false. They are appealing his extradition, claiming to prove his innocence in court.
Lastly, Ziemian’s case underscores the growing global scrutiny of crypto-related fraud. As authorities continue to investigate, the outcome of his extradition will be closely watched, particularly by those affected by the FutureNet scheme and the broader crypto community.
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