Montenegro arrests executive in $21M crypto fraud case

Montenegro has made a significant move in addressing a major crypto fraud case by arresting Roman Ziemian, co-founder of the alleged scam FutureNet.

The arrest took place on August 19, 2024, in Podgorica, where Ziemian was apprehended while using a false identity.

This action follows an arrest warrant issued by South Korea and Ziemian’s native Poland, both of which accuse him of fraud, money laundering, and theft.

The charges in South Korea are severe, with potential life imprisonment if convicted.

FutureNet, which Ziemian co-founded with Stephan Morgenstern in 2018, was initially promoted as a multilevel marketing venture linked to the crypto token FuturoCoin (FTO).

However, the value of FuturoCoin has since collapsed, and the company’s website has been taken down.

Concerns about FutureNet being a pyramid scheme were raised by Poland’s Office of Competition and Consumer Protection (UOKIK) in March 2019.

The scheme reportedly sold participation packages ranging from $10 to $10,000, promising returns for investors who recruited others.

In mid-2020, South Korean authorities began an investigation following claims from 950 investors who reported substantial financial losses.

This investigation led to a crackdown on the scheme and its promoters.

Ziemian was previously arrested in Italy in October 2022 while reportedly holding a trophy from an organized car race.

He was placed under house arrest but managed to flee the country shortly afterward.

His co-founder Morgenstern was also arrested in Greece around the same time, later found in Albania, and is slated for extradition to South Korea.

Ziemian’s case parallels that of Terraform Labs co-founder Do Kwon, who is also facing crypto fraud allegations and awaiting extradition in Montenegro.

This arrest highlights Montenegro’s role in international efforts to tackle crypto fraud and enforce legal accountability within the cryptocurrency sector.