A $40 million compensation fund has been established from seized assets for victims of the $4 billion OneCoin scam, as announced by the US Department of Justice. The international cryptocurrency investment scheme, operated by OneCoin Ltd. co-founders between 2014 and 2019, deceived up to 3.4 million investors globally.
The scheme involved the sale of a fake cryptocurrency through a multi-level marketing network, with investors losing over $4 billion. The operation, deemed 'one of the largest global fraud schemes in history', collapsed in 2017 due to the manipulation of the cryptocurrency's value. In recent developments, the DOJ has offered a $5 million reward for information on the missing founder, while another key figure has admitted to federal wire fraud and money laundering charges. According to US Attorney Jay Clayton, the DOJ will continue to prioritize the recovery of criminal proceeds and the return of funds to victims.
This compensation process comes as other efforts, such as the FTX Recovery Trust, aim to distribute billions to creditors affected by the collapse of major crypto platforms.