The scheme was founded by Ruja Ignatova and Karl Sebastian Greenwood, who defrauded approximately 3.5 million investors. Greenwood was sentenced to 20 years in prison in 2023, while Ignatova remains a fugitive and is listed on the FBI’s Ten Most Wanted list.
DOJ Opens OneCoin Compensation Fund
The United States Department of Justice has launched a compensation process to return funds to victims of the infamous OneCoin scheme. According to officials, more than $40 million in forfeited assets has been made available to people who purchased OneCoin between 2014 and 2019 and suffered financial losses.
Press release from the US Department of Justice
The recovered funds originate from assets that were seized from individuals connected to the scheme’s operations. US Attorney Jay Clayton explained that while the compensation cannot fully undo the extensive damage caused, it is still some meaningful progress toward justice for victims.
The OneCoin operation was launched in 2014, and marketed itself as a revolutionary cryptocurrency poised to surpass Bitcoin. At its peak, it was presented as one of the largest digital currencies by market capitalization, and it attracted millions of investors globally. However, the project ultimately collapsed when it became clear that the tokens had no real utility or blockchain backing, exposing the operation as a large-scale Ponzi scheme.
The fraud was orchestrated by co-founders Ruja Ignatova and Karl Sebastian Greenwood, who built an elaborate network that defrauded approximately 3.5 million victims worldwide. While US authorities estimate losses at over $4 billion between 2014 and 2016, some global estimates suggest the total damage could be as high as $19 billion.
Warning signs emerged early on when central banks in countries like Latvia, Sweden, and Norway warned investors about the project’s legitimacy. Law enforcement action intensified in 2018 when Bulgarian authorities raided OneCoin’s offices, which led to Greenwood’s arrest.
Ignatova on the FBI’s most wanted list (Source: FBI)
He was later sentenced to 20 years in prison in 2023 for his involvement in the scheme. Ignatova, who is often referred to as the “Cryptoqueen,” disappeared in 2017 and is still a fugitive. She is currently listed among the FBI’s Ten Most Wanted individuals, with a $5 million reward offered for information leading to her capture.