Ziemian's Arrest in Montenegro Sheds Light on crypto Fraud Scheme
Montenegrin authorities recently apprehended Roman Ziemian, the co-founder of the alleged crypto fraud scheme FutureNet, accused of defrauding investors of approximately $21 million.
Ziemian was reportedly living under a false identity in the capital city of Podgorica when he was arrested, based on a statement released by the Police Directorate.
Both South Korean and Polish authorities have been seeking Ziemian on charges of fraud, money laundering, and theft.
Ziemian's Potential Fate
The South Korean government has highlighted the possibility of Ziemian facing a life sentence if convicted for his involvement in the fraudulent activities.
Following his arrest, Montenegrin police seized several items and devices believed to be connected to Ziemian's alleged criminal endeavors.
Ziemian is awaiting a court appearance at Podgorica’s High Court to determine whether extradition will proceed.
FutureNet, the company founded by Ziemian and Stephan Morgenstern in 2018, purportedly operated as a multilevel marketing platform alongside its associated cryptocurrency, FuturoCoin (FTO).
However, the value of the token drastically declined, revealing the deceitful nature of the enterprise.
In March 2019, Poland’s Office of Competition and Consumer Protection (UOKiK) issued a warning regarding FutureNet, labeling it as a potential pyramid scheme.
The organization lured investors with "participation packages" ranging from $10 to $10,000, promising profits in exchange for recruiting new participants.
The scheme came to light in mid-2020 when South Korean authorities commenced an investigation into FutureNet following complaints from 950 individuals who reported losing substantial amounts of money.
Initially arrested in Italy in October 2022, Ziemian managed to escape house arrest. His partner, Morgenstern, also escaped house arrest in Greece but was later recaptured in Albania in August 2023.
Both Ziemian and Morgenstern are facing potential extradition to South Korea, where they may face life imprisonment.
Ziemian's case bears similarities to that of Do Kwon, the co-founder of Terraform Labs, who is also in custody in Montenegro facing similar charges.
Kwon's extradition has recently been postponed, as the Supreme State Prosecutor's Office (VDT) filed a request for a legality review pertaining to the extradition conditions to South Korea.
Both South Korea and the U.S. are seeking to try Kwon for civil and criminal charges related to the $40 billion collapse of the Terra/LUNA ecosystem in May 2022.
Competing extradition requests have been issued to Montenegro, where Kwon has been held since March 2023 when he was arrested for using a fake Costa Rican passport on his way to Dubai while on the run.
