US Department of Justice Launches OneCoin Compensation Initiative

The US Department of Justice has launched a compensation initiative for those affected by the massive OneCoin crypto scam. The program aims to return funds to victims using assets seized from key operators involved in the scheme.

OneCoin, founded by Ruja Ignatova and Karl Sebastian Greenwood, was initially touted as a cryptocurrency that could rival Bitcoin's market capitalization. However, it eventually collapsed when users discovered its lack of utility and law enforcement began investigating.

The scheme is estimated to have swindled over $4 billion from approximately 3.5 million victims between 2014 and 2016, with some estimates suggesting worldwide losses could be as high as $19 billion.

Ignatova, dubbed the 'Cryptoqueen,' has been a fugitive since 2017 and is currently listed on the FBI's 'Ten Most Wanted Fugitives' list, carrying a $5 million reward for information leading to her capture. Greenwood was sentenced to 20 years in prison in September 2023.