The US Department of Justice has started a formal process to pay back people who lost money in the failed OneCoin cryptocurrency scheme. This is a new step in one of the biggest fraud cases involving digital assets.
Officials confirmed that more than $40 million in forfeited funds is now available for distribution to eligible claimants. The process targets individuals who purchased OneCoin between 2014 and 2019 and suffered net losses.
The scheme, created by Ruja Ignatova and Karl Sebastian Greenwood, promised a revolutionary cryptocurrency but operated as a global fraud network. Authorities state that investors worldwide contributed over $4 billion based on false claims about the project’s technology and value.
A long-running global fraud case
OneCoin launched in 2014 from Sofia, Bulgaria, and expanded rapidly through a multi-level marketing structure. Promotional campaigns described the token as a competitor to Bitcoin, often calling it a “Bitcoin killer.” The project gained traction across multiple regions and, at one point, ranked among the largest cryptocurrencies by market capitalization.
Behind the growth, investigators later found no functioning blockchain or real utility. Central banks in countries such as Latvia, Sweden, and Norway issued early warnings, flagging risks tied to the project. Those warnings did not stop global expansion.
Between 2014 and the end of 2016, prosecutors estimate the operation defrauded roughly 3.5 million people. The losses exceeded $4 billion, though some external estimates have placed the global damage far higher.
Law enforcement actions intensified after years of scrutiny. Bulgarian authorities raided company offices in 2018. Greenwood was arrested and later sentenced to 20 years in prison in 2023. Ignatova disappeared in 2017 after boarding a flight to Athens and remains on the FBI’s most wanted list.
Recovery effort and legal process
The compensation program stems from asset forfeiture actions pursued in the Southern District of New York. Prosecutors seized proceeds linked to the fraud and redirected them toward victim recovery.
The Justice Department confirmed that eligible victims must submit claims through an official remission process. The deadline for filing petitions is June 30. The process is managed by the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section, with Kroll Settlement Administration acting as the administrator.
Assistant Attorney General A. Tysen Duva said,
“Victims are at the core of everything we do at the Department of Justice. As we did in this complex investment fraud case, the Department pursues forfeiture to take the profit out of crime and then use that money to compensate victims wherever possible.”
US Attorney Jay Clayton described the move as “an important step toward returning funds to those harmed.” He added:
“Between 2014 and 2019, OneCoin’s founders sold a lie disguised as cryptocurrency, costing victims more than $4 billion worldwide. While no recovery can fully undo the damage, our Office will continue working to seize criminal proceeds and prioritize getting money back into the hands of victims.”
Victims and the cost of deception
Investigators describe widespread financial harm across regions and income levels. Many victims entered the scheme through referrals or community networks tied to the MLM structure. Some invested savings based on promises of rapid growth and financial independence.
James C. Barnacle Jr. of the FBI’s New York Field Office said victims were “misled by falsified statements and empty promises” and often depleted personal savings in a system that never had the capacity to deliver returns.
IRS Criminal Investigation also traced illicit financial flows tied to the operation. Special Agent in Charge Jenifer L. Piovesan stated that victims were “misled and financially devastated by promises that were never real,” emphasizing efforts to track funds and return them where possible.
Warnings and ongoing risks
Authorities issued additional warnings alongside the compensation announcement. Officials stressed that neither the government nor the remission administrator will request payment from victims during the process.
The FBI has also highlighted risks tied to impersonation scams and fraudulent recovery services that target previous victims of crypto fraud. These schemes often claim to help recover lost funds but instead exploit victims again.
The Justice Department continues to pursue remaining leads, including efforts to locate Ignatova. The agency confirmed that information related to her whereabouts can be submitted through official FBI channels.
A partial recovery in a landmark case
The current $40 million pool represents only a fraction of total losses. Still, officials describe the process as a tangible step after years of investigations, prosecutions, and asset recovery efforts.
Since 2000, the Justice Department’s asset forfeiture program has returned more than $12.5 billion to victims across cases. The OneCoin remission process adds to that record, though it underscores the scale of harm caused by large-scale financial fraud in emerging markets such as cryptocurrency.
For victims, the process offers a structured path to reclaim at least part of what was lost. For authorities, it closes one chapter of a case that reshaped how global regulators approach crypto-related fraud.
Anastasiia G
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