FBI Urges OneCoin Victims to Apply for DOJ Compensation Before Deadline

TLDR

• The DOJ launched a OneCoin remission program for eligible fraud victims.
• OneCoin victims must apply for compensation before the June 30 deadline.
• The program covers OneCoin purchases made between 2014 and 2019.
• OneCoin investors collectively lost more than $4B, according to investigators.
• Ruja Ignatova remains on the FBI Ten Most Wanted Fugitives list.

The FBI is urging victims of the OneCoin cryptocurrency investment fraud to apply for compensation through a Department of Justice remission program before the June 30 deadline.

The DOJ launched the remission process on April 13 and created an official website, onecoinremission.com, for eligible victims seeking compensation. The program applies to qualifying individuals who purchased OneCoin between 2014 and 2019 and suffered direct financial losses from the scheme.

The FBI said victims may file petitions by mail, email, or through the online form available on the official remission website. Filing a petition does not guarantee payment, but the process allows victims to submit claims for review under the DOJ program.

DOJ Opens Remission Process for OneCoin Victims

The remission process is intended to return recovered funds to eligible victims of the OneCoin fraud. The DOJ program covers individuals whose investments resulted in a net loss tied directly to OneCoin purchases.

FBI New York Assistant Director in Charge James C. Barnacle Jr. said many victims were misled by false statements and promises connected to a fraudulent investment scheme. He said the FBI remains committed to helping return stolen funds to rightful owners with support from the Justice Department.

The OneCoin scheme was marketed as an international cryptocurrency investment opportunity. Prosecutors and investigators have described it as a fraudulent operation that used crypto-related claims to attract investors across several countries.

Victims who believe they qualify are being encouraged to submit documentation before the deadline. The program’s website provides filing instructions and explains the process for submitting petitions.

OneCoin Was Marketed as a Bitcoin Rival

OneCoin was co-founded in approximately 2014 by Ruja Ignatova and Karl Sebastian Greenwood. The Bulgaria-based company was promoted as a new virtual currency and was marketed to investors as a potential rival to Bitcoin.

FBI New York Special Agent Ronald Shimko, who previously worked on the investigation for nearly 10 years, said the pitch focused on investors who believed they had missed Bitcoin’s early rise. OneCoin was presented as another chance to enter a fast-growing cryptocurrency at an early stage.

Investors bought OneCoin packages that were said to provide tokens for mining OneCoin. They were then encouraged to sell similar packages to friends, relatives, and other potential investors through a multi-level marketing model.

Investigators said that structure helped OneCoin grow rapidly, as existing investors earned commissions for bringing in new participants. The investments were later found to be worthless, and victims collectively lost the equivalent of more than $4 billion.

Ruja Ignatova Remains on FBI Most Wanted List

Ignatova was OneCoin’s top leader until October 2017. She was charged in the U.S. District Court for the Southern District of New York on October 12, 2017, and a federal warrant was issued for her arrest.

A superseding indictment was issued on February 6, 2018, charging Ignatova with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit securities fraud, and securities fraud. She remains at large.

The FBI added Ignatova to its Ten Most Wanted Fugitives list on June 30, 2022. The U.S. Department of State’s Transnational Organized Crime Rewards Program is offering a reward of up to $5 million for information leading to her arrest or conviction.

Greenwood was, as a result, arrested in Thailand in July 2018 and later extradited to the United States. He was sentenced to 20 years in prison on September 12, 2023, after facing fraud and money laundering charges connected to OneCoin.

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