The @FBI is calling on victims of the OneCoin cryptocurrency fraud to submit compensation claims before a June 30 deadline, with more than $40 million in seized assets on the line. What Victi
The @FBI is calling on victims of the OneCoin cryptocurrency fraud to submit compensation claims before a June 30 deadline, with more than $40 million in seized assets on the line.
The FBI is encouraging victims of the OneCoin international cryptocurrency investment scheme whose investments resulted in a net loss to apply for compensation through a special Department of Justice (DOJ) program before the June 30 deadline.The Justice Department launched the remissions process and an official website, onecoinremission.com, for the initiative, on April 13.
The program will use over $40 million in forfeited assets seized from multiple key figures in the scheme.The process allows individuals who purchased OneCoin between 2014 and 2019 and incurred pecuniary losses directly resulting from the OneCoin scheme to file a petition.The site says filing is free and that claimants do not need a lawyer.
The authorities migrated the process to a specialized remission system managed by Kroll Settlement Administration LLC, designed to provide assistance to victims with verifiable net losses.The application submission process was enabled through three specific channels including postal mail, email, and an online form within the dedicated digital platform.
The DOJ also warned victims about follow-on scams, saying neither the department nor the claims administrator will ask people to pay in order to participate. Victims should be wary of any third party promising to speed up a claim in exchange for upfront fees.
At the end of the day, the OneCoin investments were worthless, and investors collectively lost the equivalent of more than $4 billion.Estimated global losses exceed $4 billion, affecting approximately 3.4 million users internationally.
Founded in 2014 by Ruja Ignatova, widely known as the "Cryptoqueen," and Karl Sebastian Greenwood, OneCoin was marketed as a revolutionary digital currency that would eventually surpass Bitcoin. Headquartered in Sofia, Bulgaria, the company operated through a multi-level marketing structure where users were paid commissions to recruit new investors into educational packages that purportedly included mining rights for OneCoin.There was no blockchain. There was no real cryptocurrency. The value of OneCoin was fabricated internally by the scheme's operators.
Co-founder Karl Sebastian Greenwood was sentenced to 20 years in prison in September 2023.Co-founder Ruja Ignatova remains on the FBI's Ten Most Wanted Fugitives list.The U.S. Department of State's Transnational Organized Crime Rewards Program is offering a reward of up to $5 million for information leading to the arrest and/or conviction of Ignatova.
The new process gives victims a route to seek compensation, but the numbers show the limits of that recovery. The DOJ says more than $40 million is available. The alleged fraud ran above $4 billion. Eligible victims are urged to act immediately given the deadline is days away.
Sources:FBI: Compensation for Victims of OneCoin's Cryptocurrency Investment FraudYahoo Finance: DOJ Opens Compensation Process for OneCoin Victims in $4B Crypto Fraud CaseThe Washington Times: DOJ begins compensation process for OneCoin victims defrauded of $4B
