OneCoin fraud: DOJ Opens Path For Compensation With | Crypto News
The US Justice Department (DOJ) has announced a compensation course of for victims of the OneCoin fraud. The funds are anticipated to come from property forfeited in the case, money traced back to the people behind the scheme, including co-founders Ruja Ignatova and Karl Sebastian Greenwood.
The DOJ said in a Monday assertion that more than $40 million in forfeited property are at the moment out there for sufferer compensation.
OneCoin Proceeds To Compensate Victims
OneCoin was an worldwide cryptocurrency investment scheme that ran from 2014 to 2019 and relied on deception to draw in traders around the world. Prosecutors say Ignatova and Greenwood, along with others, orchestrated the scheme.
Ignatova, dubbed “the CryptoQueen,” disappeared on October 25, 2017. Since then, she has been presumed to be on the run from varied worldwide law enforcement companies. Greenwood, on the other hand, was sentenced to 20 years in prison in 2023 for his participation in the scheme.
The DOJ describes OneCoin as a fraudulent cryptocurrency that was marketed and bought through a “global multi-level marketing network.” Although OneCoin started operations in Bulgaria, the scheme reached past Europe and focused victims globally through guarantees that officers say had been false.
The DOJ said that the scheme resulted in losses that totaled more than $4 billion worldwide. In the company’s description, traders had been misled about the character and legitimacy of OneCoin, and many put money into what the DOJ characterizes as “a lie disguised as cryptocurrency.”
At the same time, prosecutors sought legal forfeiture of property linked to proceeds from the fraud scheme. The DOJ explained that once a last order of forfeiture is issued, internet proceeds from those forfeited property could be used to compensate victims through the remission course of.
DOJ Details Remission Rules And Deadline
While the announcement focuses on the compensation pathway, DOJ officers also framed the forfeiture effort as a means to both take away unlawful positive aspects and redirect them toward hurt prevention.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said in the assertion that victims are central to the division’s work. He said the DOJ pursues forfeiture to “take the profit out of crime” and then use that money to compensate victims where potential. ‘
Under the DOJ’s description, the remission course of is meant for victims who bought OneCoin cryptocurrency between 2014 and 2019.
The DOJ’s announcement explained that eligible victims could have the opportunity to search compensation through this course of, which depends on a petition submission to be thought-about.
The company clarified that submissions must be mailed, emailed, or submitted online along with supporting documentation by the deadline of Tuesday, June 30, 2026.
Featured image from OpenArt, chart from TradingView.com
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