FBI gives OneCoin victims final days to claim recovery funds

The FBI is urging victims of the OneCoin cryptocurrency investment fraud to file compensation claims before the June 30 deadline. 

The agency said the process applies to people whose OneCoin investments caused a net financial loss.

According to the FBI notice, victims can seek payment through a Department of Justice remission program. The program covers eligible individuals who bought OneCoin between 2014 and 2019 and suffered direct financial losses.

The FBI said the DOJ launched the official process through onecoinremission.com, which is managed by Kroll Settlement Administration. Victims can file petitions online, by mail or by email. The agency warned that filing a petition does not guarantee payment.

The process is free. The FBI said justice.gov and onecoinremission.com are the only authorized websites for the investigation. That warning is important because fraud victims are often targeted again by fake recovery agents.

Over $40m in seized assets available

The remission program will use more than $40m in forfeited assets recovered from figures tied to the OneCoin scheme. The funds are meant to provide partial relief to victims who lost money after accounting for any withdrawals they completed.

In the FBI notice, FBI New York Assistant Director in Charge James C. Barnacle Jr. said victims were misled by false statements and empty promises. He added that the FBI remains committed to “returning these stolen funds to their rightful owners.”

As previously reported, the DOJ opened a $40m compensation fund for OneCoin victims in April. The latest FBI notice gives victims a final reminder before the deadline closes.

The DOJ said in its official announcement that OneCoin was sold to investors through false claims about its value and use. U.S. Attorney Jay Clayton said the founders “sold a lie disguised as cryptocurrency.”

OneCoin’s fraud history

OneCoin began in Bulgaria in 2014. Prosecutors said Ruja Ignatova and Karl Sebastian Greenwood promoted it as a new virtual currency that could challenge Bitcoin. The project used the phrase “Bitcoin killer” to attract investors.

The FBI said OneCoin used a multi-level marketing structure. Buyers purchased packages that gave them tokens they were told could mine OneCoin. They were then encouraged to sell packages to friends, family and other investors.

The system created fast growth, but prosecutors said the product had no real value. The FBI said victims worldwide lost more than $4b. Greenwood was arrested in Thailand in 2018 and later extradited to the U.S.

Greenwood was sentenced to 20 years in prison in September 2023. He was also ordered to forfeit $300m. The case remains one of the largest crypto fraud cases ever pursued by U.S. authorities.

Search for Ignatova continues

Ignatova remains at large. The FBI said she led OneCoin until October 2017, when she was charged in the Southern District of New York. She was later added to the FBI’s Ten Most Wanted Fugitives list in June 2022.

The U.S. Department of State is offering up to $5m for information leading to Ignatova’s arrest or conviction. The FBI says anyone with information can submit a tip through its official tip line or online portal.

In a previous article, crypto.news discussed Ruja Ignatova’s place on the FBI’s most wanted list. Previously, crypto.news explored reports about where the OneCoin founder may be hiding, though her location remains unconfirmed.

The FBI also told people who believe they are victims of crypto investment fraud to report it through the Internet Crime Complaint Center. For OneCoin victims, the most urgent step is the June 30 remission deadline. After that date, late claims may not be considered.