The US Department of Justice has announced the initiation of compensation proceedings for victims of the OneCoin cryptocurrency fraud scheme, with more than $40 million in confiscated assets now available for distribution.
The scheme, operated between 2014 and 2019 by Ruja Ignatova and Karl Sebastian Greenwood, defrauded investors worldwide of over $4 billion.
OneCoin was marketed as a legitimate cryptocurrency through a global multi-level marketing network and was later exposed as a fraudulent operation based on false claims and misrepresentations.
The Ministry of Justice says Victims who purchased OneCoin during this period may now be eligible to recover a portion of their losses through a forgiveness process.
Claims must be submitted by June 30 through an official petition system managed by the department’s asset recovery program.
The authorities clarify the extent of the fraud. A federal official found that victims were misled by false statements and empty promises surrounding an investment that never worked out as advertised.
The Ministry of Justice also cautions victims to remain vigilant against secondary scams and emphasizes that no payment is required to participate in the official compensation process.
The case remains one of the largest cryptocurrency fraud cases of all time, and efforts to identify and recover additional assets are ongoing.
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