Ruja Ignatova, Karl Sebastian Greenwood, OneCoin Cryptocurrency Fraud, New York 2024

The dark web of cryptocurrency scams has claimed another victim – this time, the unsuspecting investors of OneCoin Ltd. The Department of Justice has announced the beginning of the remission compensation process to provide recovery for victims of the international investment scheme involving OneCoin Ltd.

Between 2014 and 2019, co-founders Ruja Ignatova and Karl Sebastian Greenwood orchestrated a massive, international cryptocurrency investment scheme defrauding investors from around the globe. OneCoin, based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency through a global multi-level-marketing (MLM) network, swindling over $4 billion worldwide from unsuspecting investors. The scheme was so brazen that it even fooled some of the most seasoned investors, leaving a trail of financial devastation in its wake.

The Department of Justice filed multiple OneCoin-related prosecutions in the Southern District of New York, and several key figures involved in the scheme have been sentenced. The Department pursued criminal forfeiture of property derived from the proceeds of the fraud scheme, resulting in over $40 million in forfeited assets available for victim compensation.

Through the remission process, victims who purchased the fraudulent OneCoin cryptocurrency between 2014 and 2019 may be eligible for compensation. Individuals who believe they may be victims can obtain a petition form online at www.onecoinremission.com or contact the Remission Administrator directly. The deadline for filing a petition is June 30.

The Justice Department’s efforts to compensate victims of the OneCoin scheme are a testament to their commitment to holding perpetrators accountable and providing justice to those who have been wronged. As Assistant Attorney General A. Tysen Duva noted, “Victims are at the core of everything we do at the Department of Justice.” The Department’s pursuit of forfeiture and compensation is a crucial step in taking the profit out of crime and returning funds to those who have been harmed.

The case serves as a stark reminder of the dangers of cryptocurrency scams and the importance of due diligence when investing in the digital realm. As U.S. Attorney Jay Clayton warned, “Between 2014 and 2019, OneCoin’s founders sold a lie disguised as cryptocurrency, costing victims more than $4 billion worldwide.” The Department’s efforts to compensate victims are a crucial step in healing the wounds of this massive financial heist.

Source: Department of Justice

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