Justice Department opens compensation for victims of $4B OneCoin crypto fraud
OneCoin was launched by Ruja Ignatova and Karl Sebastian Greenwood in Bulgaria. Ignatova has been missing since 2017, and Greenwood was sentenced to 20 years in prison.
The U.S. Department of Justice has opened a compensation program for victims of the $4 billion OneCoin cryptocurrency fraud scheme. The initiative aims to provide financial relief to thousands of investors who lost money in what prosecutors have called one of the largest crypto scams in history.
OneCoin was launched by Ruja Ignatova and Karl Sebastian Greenwood in Bulgaria, operating as a fraudulent cryptocurrency that promised investors significant returns. The scheme collapsed after authorities determined that OneCoin was never actually a functional cryptocurrency and existed only to defraud investors. Ignatova, dubbed the "Cryptoqueen," has been missing since 2017 and remains on the FBI's Ten Most Wanted list. Greenwood was sentenced to 20 years in prison for his role in orchestrating the fraud.
The compensation program represents a significant step in addressing crypto fraud victims' rights, as regulatory authorities continue to grapple with enforcement in the digital asset space. The OneCoin case has served as a landmark prosecution that highlighted the need for stronger investor protections and clearer regulatory frameworks in the cryptocurrency industry.
The Justice Department has not yet announced specific timelines for the compensation process or detailed eligibility requirements. Victims will need to submit claims demonstrating their losses, with the department expected to provide further guidance on the application process in coming weeks.
Source: Cointelegraph
