More than a decade after the OneCoin scam began, victims of the $4 billion cryptocurrency fraud scheme are now eligible for compensation from a $40 million fund of seized assets, as announced by the US Department of Justice. The scheme, which operated from 2014 to 2019, was led by co-founders Ignatova and Karl Sebastian Greenwood, who deceived up to 3.4 million investors globally through a multi-level marketing network. The fraudulent cryptocurrency, which did not exist on any blockchain, was marketed and sold worldwide, resulting in investments of over $4 billion. The scheme collapsed in 2017 after it was discovered that the founders had manipulated the perceived value of OneCoin.
The DOJ has described the scheme as 'one of the largest global fraud schemes in history.' In 2022, Greenwood admitted to federal wire fraud and money laundering charges, and in June 2024, a $5 million reward was offered for the missing Cryptqueen. According to US Attorney Jay Clayton, 'OneCoin's founders sold a lie disguised as cryptocurrency, costing victims more than $4 billion worldwide.' The DOJ will continue to work towards seizing criminal proceeds and prioritizing the return of funds to victims. This development comes shortly after the FTX Recovery Trust announced its plan to distribute $2.2 billion to creditors, as part of its efforts to recover assets for users of the collapsed crypto trading platform.