The US Department of Justice has opened applications for compensation to victims of the OneCoin crypto pyramid scheme.
Approximately $40 million from seized assets is currently available.
Read also: Bitcoin on April 14—BTC Climbs Above $74,000 as Hopes Rise for De-Escalation With Iran
Between 2014 and 2019, scheme organizers collected over $4 billion from investors worldwide. The number of victims is estimated at 3.5 million people.
Those who purchased OneCoin tokens and suffered a net loss can receive compensation. Applications are being accepted through the Kroll program until June 30, 2026.
Contents
How the OneCoin Scheme Worked
OneCoin was marketed as a promising cryptocurrency and sold through a multi-level marketing (MLM) network. Organizers promised investors high returns and quick wealth. Promoters actively held conferences, seminars, and online presentations, creating the appearance of a legitimate high-tech project.
In reality, OneCoin did not exist on a blockchain. New “coins” were generated automatically within a closed system, with no real decentralization or open code. Users purchased “packages” of various sizes, believing they were investing in a real cryptocurrency.
The lack of a transparent blockchain and independent audit went unnoticed for a long time due to aggressive marketing and constant promises of price appreciation.
Related: American Musician Loses $420,000 in Bitcoin to Fake Ledger App
Legal Prosecution of Organizers
Co-founder Ruja Ignatova remains on the international wanted list. The FBI has placed her on its Ten Most Wanted list and is offering $250,000 for information leading to her arrest. The US State Department has announced an additional reward of up to $5 million.
Her associates have already been convicted:
- Co-founder Karl Sebastian Greenwood was sentenced to 20 years in prison and a $300 million fine.
- Legal department head Irina Dilkinska received 4 years in prison and an $111.44 million fine.
- Attorney Mark Scott, who laundered approximately $400 million, was sentenced to 10 years in prison.
How to Stay Safe in Crypto
To avoid similar schemes, crypto market users are advised to:
- Verify the existence of a real public blockchain and open-source code
- Study the whitepaper, team, and independent audits
- Be cautious with projects that have MLM elements and promises of guaranteed high returns
- Never share seed phrases or private keys with third parties
- Only download apps and wallets from official sources
The DOJ emphasized that it will continue working to seize criminal proceeds and return funds to victims.
Read also: Best Crypto Apps for Beginners
