Key Takeaways
- A $40 million compensation fund has been established by the US Department of Justice for victims of the $4 billion OneCoin cryptocurrency scam. Refunds are now available to qualified investors who suffered losses between 2014 and 2019.
- Millions of people worldwide were affected by the plan spearheaded by Ruja Ignatova and Karl Sebastian Greenwood.
- Authorities are still working to retrieve further stolen property. This case highlights one of the largest Ponzi scams in cryptocurrency history.
- When it comes to high-return cryptocurrency opportunities, it also emphasises the importance of investor awareness, investigation, and caution.
Scam took all, made fortunes fall, and the DOJ answered victims’ calls. A portion of the losses suffered by victims of the notorious OneCoin cryptocurrency scam may now be recouped.
Victims of the $4 billion OneCoin fraud scam can now seek restitution through a $40 million fund of confiscated assets, the US Department of Justice (DOJ) announced Monday.
From 2014 to 2019, Ignatova and Karl Sebastian Greenwood, co-founders of OneCoin Ltd. (OneCoin), and others ran an international cryptocurrency investment scheme that defrauded up to 3.4 million investors worldwide, according to the DOJ.
The DOJ referred to the Ponzi scheme as “one of the largest global fraud schemes in history,” and it fell apart in 2017 after it was discovered that Ignatova and her group had manipulated OneCoin’s perceived value by creating new coins automatically.
The compensation procedure is “an important step toward returning funds to those harmed,” according to Manhattan US Attorney Jay Clayton.
$5M Reward For ‘Cryptoqueen’ Capture”
According to Clayton, “OneCoin’s founders sold a lie disguised as cryptocurrency between 2014 and 2019, costing victims more than $4 billion worldwide.”
“Our Office will continue to work to seize criminal proceeds and prioritise getting money back into the hands of victims, even though no recovery can fully undo the damage.”
According to Justice Department estimates, the operation took almost $4 billion from about 3.5 million victims between 2014 and the end of 2016. Nonetheless, other estimates put the global losses at $19 billion.
Prior to OneCoin’s downfall, a number of central banks, including those of Latvia, Sweden, and Norway, warned investors that it might be a Ponzi scheme.
As one of their “Ten Most Wanted Escapees,” the FBI is offering a $5 million reward for information leading to her apprehension and conviction.
Final Thought
From fraud to fund, what’s your sum? Will your refund finally come? The OneCoin compensation procedure began about four weeks after the FTX Recovery Trust announced that it would deliver $2.2 billion to creditors in its fourth payout under the exchange’s Chapter 11 plan.
As part of a procedure to recover assets for customers of the once-dominant cryptocurrency trading platform, which failed in November 2022 and precipitated a sharp decline in the market, earlier rounds totalled almost $6 billion.
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