DOJ Launches $40 Million OneCoin Victim Compensation

The U.S. Department of Justice announced on Monday the launch of a compensation process for victims of the OneCoin cryptocurrency Ponzi scheme, making more than $40 million in forfeited assets available to reimburse eligible investors who suffered net losses from purchases made between 2014 and 2019.

Individuals who bought OneCoin during that period and can document their financial losses qualify to file claims through a remission program administered by the department and Kroll, a third-party firm. Petition forms are accessible on the program's website, with submissions required by June 30. The funds originate from criminal forfeiture actions in federal prosecutions, primarily in the Southern District of New York. U.S. Attorney for the Southern District of New York Jay Clayton described the initiative as "an important step toward returning funds to those harmed," adding, "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."

OneCoin, founded in Bulgaria in 2014 by Ruja Ignatova and Karl Sebastian Greenwood, was promoted as a rival to Bitcoin and quickly expanded...