U.S. Justice Department Opens $40 Million Compensation Process for OneCoin Fraud Victims

The U.S. Department of Justice announced on April 14, 2026 that victims of the OneCoin fraud scheme can seek compensation from a $40 million fund of seized assets, though this represents only about 1% of the over $4 billion invested by up to 3.4 million victims worldwide. Between 2014 and 2019, co-founders Ruja Ignatova and Karl Sebastian Greenwood operated OneCoin Ltd. from Sofia, Bulgaria as a fraudulent cryptocurrency scheme that marketed worthless tokens through a multi-level-marketing network despite having no actual blockchain. Greenwood admitted to wire fraud and money laundering in 2022 and received a 20-year prison sentence, while Ignatova has been missing since the scheme collapsed in 2017, prompting the DOJ to offer a $5 million reward for her capture. U.S. Attorney Jay Clayton stated the government would continue working to seize additional criminal proceeds for victims of what the DOJ calls one of the largest global fraud schemes in history.

DOJ's $40 Million Victim Compensation Fund

• ▪The U.S. Department of Justice announced on April 14, 2026 that OneCoin fraud victims can seek compensation through a $40 million fund of seized assets
• ▪The U.S. Department of Justice has $40 million in seized assets for OneCoin victim compensation
• ▪U.S. Attorney Jay Clayton for the Southern District of New York said the DOJ would continue working to seize criminal proceeds and prioritize getting money back into the hands of OneCoin victims

OneCoin's $4 Billion Fraudulent Cryptocurrency Scheme

• ▪Victims worldwide invested over $4 billion in OneCoin
• ▪Between 2014 and 2019, Ruja Ignatova and Karl Sebastian Greenwood operated OneCoin Ltd., an international cryptocurrency investment scheme that defrauded up to 3.4 million investors globally
• ▪The OneCoin ponzi scheme collapsed in 2017 after Ruja Ignatova and her team were found to have manipulated OneCoin's perceived value through the automatic generation of new coins

Legal Proceedings and Ongoing Enforcement Efforts

• ▪Karl Sebastian Greenwood admitted to federal wire fraud and money laundering charges in 2022
• ▪In June 2024, the U.S. Department of Justice offered a $5 million reward for the missing Ruja Ignatova

Perspective of OneCoin fraud victims

• ▪The $40 million in seized OneCoin assets available for victim compensation represents approximately 1% of the over $4 billion invested by victims worldwide

Perspective of U.S. Department of Justice

• ▪The U.S. Department of Justice's $5 million reward for Ruja Ignatova reflects the priority placed on capturing the missing OneCoin co-founder

Perspective of Karl Sebastian Greenwood

• ▪Karl Sebastian Greenwood's 20-year prison sentence reflects the severity of his involvement in defrauding up to 3.4 million OneCoin investors
• ▪Karl Sebastian Greenwood's admission to federal wire fraud and money laundering charges in 2022 acknowledged his criminal role in the OneCoin scheme