The US Department of Justice has taken a significant step regarding OneCoin, considered one of the largest cryptocurrency fraud cases in history. The agency announced the initiation of a formal compensation process for investors affected by the approximately $4 billion scam. According to the statement, over $40 million obtained from seized assets will be distributed to eligible victims.
Compensation applications are open until June 30
Applications must be made through an authorized compensation administrator, and the deadline is June 30. The process covers individuals who purchased OneCoin between 2014 and 2019 and suffered net losses from these investments. US officials emphasize that while this initiative does not fully compensate victims for their losses, it offers a significant restitution opportunity.
When it first emerged, OneCoin positioned itself as an alternative to Bitcoin, even quickly reaching a wide audience with the claim of being the second-largest cryptocurrency by market capitalization. However, over time, it became clear that the project lacked a genuine blockchain infrastructure and was a Ponzi scheme entirely powered by the money of new investors. The scheme, estimated to have affected approximately 3.5 million investors globally, is associated with losses reaching up to $19 billion according to some analyses.
According to data released by the US Department of Justice, over $40 million in funds currently ready for distribution consist of assets seized in various criminal cases. These assets were obtained primarily as a result of investigations and lawsuits conducted in the Southern District of New York. The process is being managed by the international consulting firm Kroll.
OneCoin founder still a runaway
Ruja Ignatova, one of the founders of OneCoin, is still a runaway. Ignatova, who disappeared after boarding a flight to Athens in 2017, was added to the FBI's most wanted list in 2022. US authorities are offering a reward of up to $5 million for information that helps in her capture. While Ignatova's fate remains uncertain, the legal process is proceeding with other individuals. Karl Sebastian Greenwood, another co-founder of the project, pleaded guilty to money laundering and fraud in 2022. In 2023, Greenwood was sentenced to 20 years in prison and faced a $300 million fine. Irina Dilkinska, OneCoin's head of legal and compliance, was also tried on similar charges and received a 4-year prison sentence in 2024.
Dilkinska also had over $111 million in assets seized. The investigation was not limited to these individuals. In a case opened in Germany, a lawyer accused of transferring millions of euros on behalf of Ignatova from the Cayman Islands to properties in London also faced money laundering charges. In the same case, a couple who allegedly managed OneCoin customer payments and processed approximately €320 million were also tried. Finally, in the US, a case was opened against a man named William Morro.
According to the prosecution, Morro made false statements to banks to conceal the source of OneCoin-related funds and orchestrated millions of dollars in transfers. Arrested in April 2024, Morro is being tried on charges of conspiracy to commit bank fraud. Authorities say the initiated compensation process could set a precedent for similar fraud cases.
