Final Hours for OneCoin Victims: Billions Lost as DOJ Compensation Deadline Looms

Thousands of investors caught up in the infamous OneCoin cryptocurrency fraud have reached a critical point, with the US Department of Justice's (DOJ) compensation programme approaching its June 30 application deadline.

The Federal Bureau of Investigation (FBI) has urged eligible victims worldwide to submit claims through the DOJ's remission programme, which aims to return recovered funds to investors who suffered direct financial losses after purchasing OneCoin between 2014 and 2019. Although successful applications may lead to compensation, the authorities have stressed that submitting a claim does not guarantee payment.

The remission process, launched on 13 April through the official website onecoinremission.com, allows eligible victims to file claims online, by email or by post. The programme is intended for individuals whose investments resulted in a net financial loss as a direct consequence of the scheme.

According to the FBI, the initiative represents another step in a long-running effort by US authorities to recover funds stolen through one of the largest cryptocurrency investment frauds ever uncovered. Officials said many victims were persuaded to invest after being presented with misleading claims and unrealistic promises of extraordinary returns, resulting in substantial losses that depleted personal savings.

OneCoin was established in 2014 by Ruja Ignatova and Karl Sebastian Greenwood. Based in Bulgaria, the company promoted its digital currency as a revolutionary cryptocurrency capable of surpassing Bitcoin, attracting investors eager to capitalise on the rapid growth of digital assets.

Investigators said the company marketed OneCoin as an opportunity for people who had missed Bitcoin's early rise to participate in what was presented as the next major cryptocurrency. Investors were told the value of OneCoin would continue to increase and eventually become widely accepted as a payment method.

Authorities allege that Ignatova exploited the growing public enthusiasm surrounding cryptocurrencies by promoting OneCoin at major international events and conferences. Together with Greenwood, she introduced a multi-level marketing model that encouraged existing investors to recruit friends and family by selling OneCoin investment packages in return for commissions. New investors were then incentivised to repeat the process, fuelling rapid global expansion.

The investment packages included tokens that supposedly allowed buyers to mine OneCoin. However, investigators concluded that the cryptocurrency had no genuine value and that the business operated as a fraudulent investment scheme rather than a legitimate digital asset.

The fraud ultimately caused investors worldwide to lose more than US$4 billion, making OneCoin one of the largest cryptocurrency scams in history.

The FBI said its work with the DOJ remains focused on recovering stolen funds and returning them to eligible victims wherever possible.

While compensation efforts continue, law enforcement agencies are still searching for Ignatova, widely known as the “Cryptoqueen”. She disappeared in 2017 and remains one of the FBI's most wanted fugitives.

The US Department of State, through its Transnational Organized Crime Rewards Program, is offering a reward of up to US$5 million for information leading to her arrest or conviction. Investigators believe her continued ability to evade capture is partly due to extensive financial resources and support from international criminal networks and other overseas associates. Authorities said they continue to work closely with partners around the world to locate her.

Greenwood, meanwhile, was arrested in Koh Samui, Thailand, in July 2018 before being extradited to the United States later that year to face fraud and money laundering charges. In September 2023, he was sentenced to 20 years in prison.

The investigation has also received support from the Internal Revenue Service (IRS) and the DOJ.

The FBI continues to encourage anyone with information about Ignatova's whereabouts to contact law enforcement. The agency is also urging victims of cryptocurrency investment fraud to report incidents to the Internet Crime Complaint Center (IC3), stop sending money to suspected fraudsters immediately and avoid alerting suspects that authorities have been contacted, as doing so could interfere with ongoing investigations.

Investigators added that every piece of information received from the public has the potential to support ongoing efforts to identify suspects, recover stolen assets and assist victims of cryptocurrency fraud.