Montenegro Arrests Co-Founder of Crypto Fraud Scheme FutureNet for $21M Scam

Montenegrin authorities have apprehended Roman Ziemian, co-founder of the alleged crypto fraud scheme FutureNet, which is accused of defrauding investors of approximately $21 million.

The arrest was made in the capital city of Podgorica, where Ziemian was reportedly living under a false identity, according to a statement released by the Police Directorate.

Ziemian is wanted by both South Korean and Polish authorities on charges of fraud, money laundering, and theft.

Ziemian Could Face a Life Sentence if Convicted

The South Korean government has indicated that Ziemian could face a life sentence if convicted.

Following his arrest, Montenegrin police seized several items and devices believed to be linked to his alleged criminal activities.

Ziemian is scheduled to appear before a judge at Podgorica’s High Court to determine whether he will be extradited.

FutureNet, the company Ziemian co-founded with Stephan Morgenstern in 2018, promoted itself as a multilevel marketing platform with an associated cryptocurrency, FuturoCoin (FTO).

However, the token has since plummeted in value, reflecting the fraudulent nature of the enterprise.

Polish national Roman Zimian, who is an alleged co-founder of crypto Ponzi scheme Futurenet, was originally arrested in Italy in 2022 but escaped while under house arrest.

Police in Montenegro announced his recapture on Sunday, detailing how the accused crypto scammer was…

— Crypto Viking (@CryptoVikingAJ) August 20, 2024

In March 2019, Poland’s Office of Competition and Consumer Protection (UOKiK) issued a warning about FutureNet, labeling it as a potential pyramid scheme.

The organization had been selling “participation packages” priced between $10 and $10,000, promising investors profits for recruiting new participants.

The scam began to unravel in mid-2020 when South Korean authorities launched an investigation into FutureNet following complaints from 950 individuals who claimed they lost millions of dollars.

Ziemian was initially arrested in Italy in October 2022 after winning a car race but was placed under house arrest, from which he later escaped.

His partner, Morgenstern, was also apprehended in Greece that same month, escaped from house arrest, but was later recaptured in Albania in August 2023.

Both Ziemian and Morgenstern are expected to face extradition to South Korea, where they could be sentenced to life imprisonment.

Do Kwon Awaits Extradition

Ziemian’s case bears similarities to that of Do Kwon, co-founder of Terraform Labs, who is also detained in Montenegro and faces similar charges.

Earlier this month, Kwon’s extradition was postponed again after the Supreme State Prosecutor’s Office (VDT) filed a request for the protection of legality.

The request by the Prosecutor’s Office aimed to review whether the extradition conditions to South Korea were legally met.

“At today’s session of the council, a decision was made that determines the postponement of the execution of the decision of the High Court in Podgorica and the Court of Appeal of Montenegro,” the court statement said.

Both South Korea and the U.S. want to try Kwon for civil and criminal charges tied to the $40 billion implosion of the Terra/LUNA ecosystem in May 2022.

Both countries have issued competing extradition requests to Montenegro, where Kwon has been in custody since March 2023, when he was arrested for using a fake Costa Rican passport en route to Dubai while on the run.